Another operator is closing up shop. WynnBet has announced that it is shutting down sports betting and online casino operations in a number of states, including West Virginia.
The move comes as a surprise since WynnBet just launched a WV online casino in June.
WynnBet WV online casino closing up after recently launching
There had been optimism surrounding WynnBet, when the operator launched an online casino in the Mountain State. WynnBet had just partnered with EveryMatrix earlier this month, in an attempt to add online content.
Through nearly a month of July data, WynnBet, the only occupant under the Mardi Gras license, generated $602,346.82 in revenue and $76,799.22 in profit.
Since the West Virginia Lottery displays revenue by casino license, it’s difficult to see where WynnBet stacks up. The Mountaineer license, partners with Caesars and BetRivers, recorded $18.3 million in revenue during the FY 2022/2023. Over a 12-month period, WynnBet was on pace to post $7.2 million in revenue, which wouldn’t have been too far off from Caesars or BetRivers.
This likely isn’t a West Virginia issue. The operator is shutting down operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee and Virginia.
Julie Cameron-Doe, Wynn Resorts CFO, said:
“While we believe in the long-term prospects of iGaming, the dearth of iGaming legislation and the presence of numerous other investment opportunities available to us around the globe have led us to the decision to curtail our capital investment in WynnBET to focus primarily on those states where we maintain a physical presence.”
The press release says WynnBet is attempting to cease operations “as soon as possible.”
WynnBet West Virginia sports betting fared worse
WV sports betting is much more difficult to sustain long-term success than the online casino market. In the same July period, WynnBet’s retail casinos took in more bets than the online sportsbook. The online sportsbook accounted for only 38% of total bets made.
Its online sportsbook was only on pace to generate $2.9 million in handle and $390,576 in revenue over a 12-month period.
Cameron-Doe commented on the sports betting side:
“In light of the continued requirement for outsized marketing spend through user acquisition and promotions in online sports betting, we believe there are higher and better uses of capital deployment for Wynn Resorts shareholders.”
What happens to the West Virginia gaming market?
Everything else is remaining the same in West Virginia. However, with WynnBet’s departure, Betly relaunched a sportsbook and online casino before the start of the NFL season. It will slide back under the Mardi Gras license.
The operator had temporarily shut down operations in June to recalibrate. According to the operator’s website, the new Betly app will “feature slots, table games, and sports betting with a single wallet for you to wager on both casino games and sporting events”
West Virginia will have eight sportsbooks and eight online casinos.