After establishing a presence in New Jersey and Virginia, Wynn Resorts Ltd. is ramping up its sports betting business as it expands into more US states.
By any conceivable metric, Wynn Resorts’ businesses aren’t doing to well right now. Despite the company coming off a recent market valuation increase following a 2.2% rise in its share price last week, its casinos are pulling in less revenue than before. This week, Wynn Resorts has just announced a planned expansion for its sports betting business as it establishes itself in Tennessee and Virginia – with more states to follow.
In a move that will exponentially increase the company’s investment in the iGaming and sports betting industries, Wynn explained the move in a press conference this week, stating that it plans to direct an additional $80 million towards its investments in those areas as it builds a more competitive business across the US.
A Brief Breakdown of Wynn Resorts’ Sports Betting Portfolio
WynnBet, the company’s sports betting provider, already has a presence in New Jersey and Nevada and is now expanding to cover Tennessee and Virginia. Incidentally, it was one of the first operators to gain the state approval needed to operate in the Virginia market when sports betting was legalized in April 2020.
Recognizing the value of partnerships in the profitability of its business, WynnBet has partnered with NASCAR in Virginia. This move is central to the company’s expansion plans in the state and leverages the statewide popularity of the motorsport. WynnBet also plans to double down on this partnership as it makes inroads into more states in the south.
WynnBet was launched in New Jersey in August and despite a somewhat muted reveal, the company’s new sports betting business manages to bring more than $20 million in revenue in just the first couple of months.
Amid A Slight Downturn in Its Casino Business
Wynn Resorts made its name in the casino and resort business. With 22 five star resorts and casinos across the world, the company is a global hospitality and commercial gaming behemoth. However, it has had to endure a 77.5% hit in revenue in the third quarter of 2020 at $370.5 million compared to $1.65 billion in the same period last year.
Of course, this downturn comes as a result of the COVID-19 pandemic has hit the entire commercial gaming landscape. Wynn Resorts, however, is admirably taking its future into its own hands amid unforeseen circumstances and an uncertain future.
Importantly, WynnBet plans to place an increased emphasis on online gaming and sports betting. This is a product of calculated foresight, as the company steers itself towards revenue streams that will be unhindered by the ongoing pandemic.
Looking to the Future
WynnBet is making big bets on its investment in sports betting. With any luck, this decision could, in the future, result in an extremely profitable new venture separate from its parent company’s hotels and casinos.
WynnBet’s partnerships with NASCAR and acquisition of UK-based BetBull show a commitment towards the sector. As casinos continue to experience reduced foot traffic, this move towards diversification could turn around the company’s gaming business.