Expansion in the Cards for Wynn Resorts

The rapid expansion of the US legal sports betting industry is forcing the hand of many predominant retail gambling operators to evaluate their future plans. Many, if not already part of the online sports betting and gaming space are pondering a move in that direction. The latest operator to signal a desire to expand their mobile and igaming presence is Wynn Resorts.

Wynn Resorts, this week, pledged $80 million to invest in expansion of their legal sports betting platform, including mobile. Its intent is to build their sports betting portfolio and expand into more U.S. markets. The news comes on the heels of Wynn's acquisition of UK betting firm BetBull which has been a fixture in the legal sports betting space in Europe for years.

With Wynn acquiring 71% of BetBull, it builds on and consummates a relationship the two firms have had since 2018.

WynnBet's Evolution

While not a huge name in the legal mobile sports betting space, WynnBet, with the aid of BetBull launched their own product in August in the state of New Jersey, a state that has quickly risen up the ranks and is now the most bet-friendly state in the US. Having a presence in The Garden State gives Wynn some instant legal sports betting credibility.

The last report from Wynn had the sports betting provider generating $20 million in revenue - not too bad for a name that most generic sports betting fans have never heard of. That said, there is a ton of room for growth in the New Jersey market that just smashed a record for the most money taken in by a state over a one-month period.

More About the Expansion Plans

Wynn currently has sports betting operations in two states - Nevada and New Jersey but reportedly has its eyes on a few more - Tennessee and Virginia to name two. The Company has gained approval from Virginia already once the platform, which was voted on and approved November 3, goes live. Massachusetts and Florida are also on the Wynn radar but those states haven't announced any plans to bring on their own legal sports betting platform. The WynnBet app is waiting to go live in Illinois.

The possibility of an expansion into Virginia was bolstered by a recent partnership that Wynn forged with NASCAR, which is a mainstay in the state. That partnership could also pave the way for Wynn to be welcomed in other Southern states that either have, or are working on bringing in a sports betting platform into their jurisdiction.

Why the Need to Expand Now

COVID-19 hit the mostly-retail sports betting company hard. Wynn took a 77.5% hit year-over-year in their overall revenues in Q3. They went from $1.65 billion last year at this time to $370.5 million in revenues during the last quarter. Obviously, a new revenue path was necessary to seek out.

Wynn saw the writing on the wall with respect to their business. The American Gaming Association reported last month that 80% of the National Betting handle, which eclipsed $2.5 billion in September

came via mobile betting platforms. New Jersey, where they have a presence saw 90.5% of their National-record $748.6 million handle coming from mobile apps.

Wynn must get a bigger piece of that pie in the future in order to remain relevant and turn around their sliding profit margins.

Going Forward

There is little doubt about where the legal sports betting industry is headed as we head into 2021 – toward a more mobile-focused platform in new and existing states. Wynn resorts saw a need to expand beyond retail and acted with their latest cash infusion that is to be directed at the WynnBet app.

Wynn had been considered a major player in the betting industry in the US but found itself slipping behind those with a strong mobile background. Look for Wynn to reassert itself with their decision to develop the mobile side as the WynnBet app becomes better known in the legal sports betting environment.