Any operator that regrets not winning a NY sports betting license has another shot at the market, according to the New York Post.
WynnBET, the interactive division of Wynn Resorts, might be for sale at the discounted price of $500 million, the Post reported Sunday evening.
That means one of the nine NY sports betting licenses is up for sale just weeks after the market opened. Perhaps the early activity will draw some suitors who did not bid the first time around. The state’s first four sportsbooks took more than $600 million in bets over the first nine days.
WynnBET declined comment when reached by LSR.
Was writing on the wall in NY sports betting comments?
WynnBET was picked as one of the nine New York licensees in early November. That soon was followed by multiple statements suggesting the company was done competing for sports betting market share.
“New Yorkers represent a significant portion of the Wynn Las Vegas and Encore Boston Harbor databases, and we look forward to giving those customers more ways to earn and use Wynn Rewards,” Wynn Interactive CEO Craig Billings said after winning the license. “We also look forward to meeting and engaging with new customers in the state via WynnBET.”
Those comments were followed days later by outgoing Wynn Resorts CEO Matt Maddox saying the company would not spend big to acquire customers.
“The market is really not sustainable right now. Competitors are spending too much to get customers. And the economics are just not something that we’re going to participate in.
“We are focused on building a long-term business that’s sustainable, that is not losing lots and lots of money. So we are shifting our strategy to think about the long term, and think about cash preservation.”
Those comments were then followed by the end of WynnBET’s reverse takeover by a SPAC to take the interactive division public. That deal, announced in May, valued the combined companies at $3.2 billion.
Who could buy WynnBET?
There is a major front-runner for who could buy WynnBET to get into New York but the reality is multiple companies will be looking at the $500 million price point.
The obvious fit is Fanatics, which failed to even be considered for a New York license in its joint bid with Penn National. Bet365 also missed out on New York and certainly has deep enough pockets for the purchase.
WynnBET has more to offer than just New York, though, that could make it a fit for any operator looking to expand. It has market access to 14 states, including eight live states:
- New Jersey
There are also six states pending launch:
- New York
- West Virginia
Mo’ promos, mo’ money?
The early results out of New York show operators unwilling to dish out large promos are not landing customers.
Caesars Sportsbook owned a 42.7% handle share through the first nine days. That is no surprise considering it opened with $3,300 in promos.
FanDuel Sportsbook followed with 33.2% of handle share while DraftKings Sportsbook took 22.3%. That is a surprising disparity considering they offered equal promos to start.
The real proof, though, is in BetRivers‘ market share. The brand might be the least well-known of the four nationally but it has a decent presence in the region. Rush Street, former parent company of BetRivers, even owns a casino in Schenectady.
None of that mattered when the brand offered $250 in promos. BetRivers only captured 1.8% of handle through those first nine days.