Wynn Resorts is winding down its online sports betting and iGaming platform, WynnBET, in certain U.S. 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 couple of months after it launched WynnBet in the state.
Wynn, however, said operations in Nevada and Massachusetts will continue unaffected, while those in New York and Michigan remain under review.
Wynn Chief Financial Officer Julie Cameron-Doe cited the dearth of iGaming legislation and the continued requirement for outsized marketing spend in online sports betting for the decision.
Shares of the company were down about 4% in afternoon trade.
WynnBET is part of the company's majority-owned subsidiary, Wynn Interactive, which was expected to merge with Austerlitz Acquisition Corp I. The deal, however, was terminated in November 2021.
On Wednesday, Wynn Resorts posted second-quarter results above 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)
