WynnBET to Continue Cutting Marketing Spending

Wynn Resorts, Limited (WYNN) CEO Craig Billings announced the company generated approximately $785 million in turnover across sports and casino betting in Quarter 4 of 2021 – a 29 percent sequential increase in revenue. 

https://twitter.com/ButlerBets/status/1493704492222750727

Billings added.

“This was despite a meaningful curtailment in marketing spend in November and December. As you may recall on our Q3 call, we were very explicit about our view on the unsustainable nature of the current competitive environment in sports betting and we stated our intention to manage the business with a long-term shareholder-friendly view.”

It’s expected marketing cuts will only increase into 2022 Quarter 2, too.

With WynnBET a minor player in the sports betting landscape, and one of the most aggressive market spenders to acquire new customers ahead of the 2021 NFL Season, it’s not surprising to see the company continuing to cut market spending moving forward.

However, Billings did note the initial reception from customers in recently launched states New York and Louisiana has been encouraging. 

It was also noteworthy that Billings wouldn’t comment on a New York Post article from Jan. 23, suggesting the WynnBET online sportsbook was for sale at a deep discount.

https://twitter.com/MazzNYC/status/1493706362873958403

Furthermore, Billings continued.

“The I-gaming business, where we have actually seen pretty reasonable success, there's a logical place for us in that business longer term. Unfortunately, it's not a humongous TAM right now. Sports betting is the total addressable market and sports betting is where most of the irrational behavior is taking place. So we will generate shareholder value from that business. I think the way we think about it is we're going to be really focused on the user acquisition flip side. We're going to be focused on the product side, and we're going to see how the end markets really behave over the course of the next several quarters, and then we'll figure it out accordingly.”

Finally, it was important for Billings to highlight the recent sale and lease back of its Encore Boston Harbor real estate was, “nothing more than a financing and capital structure decision.” He doubled-down and confirmed part of the development would be of “complimentary non-gaming amenities.”

All in all, Wynn Resorts appears content to stay the course as a big player in the sports betting market and avoid overextended spending on marketing and customer-acquisition promotions.

Make sure to keep an eye on our Live Odds page throughout the week to get the best lines possible and connect with others in the SBR community on our popular sports betting forum.