(Reuters) – Wynn Resorts is phasing out its online sports betting and iGaming platform, WynnBET, in certain US states due to a lack of clear rules and higher customer acquisition costs, the casino operator said on Friday.
The company said it was ceasing operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia. The decision to pull out of West Virginia comes a few months after it launched WynnBet in the state.
However, Wynn said operations in Nevada and Massachusetts will remain unaffected, while those in New York and Michigan are still under review.
Wynn Chief Financial Officer Julie Cameron-Doe cited the lack of iGaming legislation and the continued need for excessive marketing spend on online sports betting for the decision.
Shares of the company fell about 4% in afternoon trading.
WynnBET is part of the company’s majority owned subsidiary, Wynn Interactive, which was expected to merge with Austerlitz Acquisition Corp I. However, the deal was terminated in November 2021.
On Wednesday, Wynn Resorts released second-quarter results that beat Wall Street estimates as its Las Vegas and Macau properties saw growth in gaming, dining and hotel bookings.
(Reporting by Ananya Mariam Rajesh in Bengaluru; editing by Pooja Desai and Anil D’Silva)
