Wynn Resorts has invested $80 million into a new joint venture to tackle US online sports betting and gaming.
The company formed Wynn Interactive in October after acquiring UK betting firm BetBull. Wynn holds a 71% stake in the new Interactive business, with former BetBull shareholders holding the remaining 29%.
The two companies initially began working together on sports betting back in 2018.
What is BetBull?
BetBull describes itself as a social sports betting community. Essentially, customers can find and place bets alongside friends and groups, then cheer on the bets in a chat room.
Wynn CEO Matt Maddox said Wynn initially partnered with BetBull because it wanted to prioritize product.
“The founders of [BetBull] were a great cultural fit,” Maddox said. “They were the founders of Bwin and Party and understand this intimately. And they built a product in the UK that was really very social.
“The engagement they had with their customers was quite extraordinary. And therefore, their (key performance indicators) were really, really good. So when you see your friend making a bet, it will pop up on your phone. Do you want to follow your friend? It’s very parlay heavy.”
Maddox said acquisition costs and player values were “quite attractive” compared to industry standards.
Big plans for Wynn Interactive
The new company contains around 150 people, and has market access in nine states.
Maddox said the JV was in negotiations for access to another seven states.
That means it would soon have access to half the addressable US sports betting market.
Wynn quietly launched its first online sportsbook and online casino in New Jersey in August.
“We’re learning a lot as we have product releases every two weeks,” Maddox added. “And so far our CPAs are quite good, and it’s encouraging what we’re seeing. We’ve had lots of interest from various people wanting to co-invest, wanting to be a part of it.”
Wynn Interactive currently generates around $20 million in revenue, mainly via BetBull, Maddox said. That will “increase exponentially” as Wynn Bet launches in new states.
The new focus on online sports betting comes with Wynn facing increasing pressure on its land-based properties in Macau and the US.