Wynn turns their attention to iGaming as casinos continue to struggle

Wynn's land-based operations continue to record major losses while their iGaming division announces a new deal 

Wynn Resorts, a casino operator, is turning their attention to their interactive platforms as their land-based operations are still suffering from the pandemic. 

Wynn generated revenue of $370.5 million in Q3, according to figures released on Thursday. This is a 77.5% decline from the same period last year. This amounted to a loss of nearly $66 million while in Q3 2019 Wynn recorded earnings of $396 million.  

Meanwhile, the Wynn Macau resort also experienced a revenue decline of 89.2% which amounts to $51.4 million. This fall in revenue resulted in negative earnings amounting to $34.5million. The situation did not get any better at the Wynn Palace as revenue dropped by a staggering 97.4% to just $15.7 million.  

Wynn Palace suffered the most due to its VIP win rate falling to 1.04%. The win rate was expected to range between 2.7%-3%, well short of the actual outcome. Wynn Palace and Wynn Macau both reported major table win declines and Wynn Macau also recorded a VIP win rate of 3.95%. 

Turning our attention to stateside, the situation remains unchanged as Wynn’s Las Vegas revenue fell by 53.3% to $186.7 million while earnings also declined by 77% to $20.3 million. Additionally, Wynn’s Encore property cut its schedule to five days and four nights per week due to less demand. This is set to have a huge impact on Wynn Las Vegas, sooner rather than later, and it is not a positive one. 

WynnBet - The future?

Fortunately, Wynn had some positives to talk about in Wynn Interactive. The WynnBet brand, which is their iGaming / sports betting division, had it’s opening party last week announcing an authorised gaming operator deal with NASCAR. 

Wynn Interactive was inaugurated in 2018 when they struck a deal for a joint venture with UK-licensed BetBull Ltd. Following a Wynn-lgrestructuring combining BetBull’s operations, Wynn Sports Interactive and Slots social casino business, Wynn claimed to own an estimated 71% of the joint venture. This will help them strengthen Wynn interactive in the future. 

Due to this restructuring, Wynn is able to provide around $80 million in “robust cash funding to fuel growth and expansion.” Moreover, WynnBET is looking to add to their Nevada and New Jersey licenses by applying for licenses “on a standalone basis” in Tennesse and Virginia. 

Additionally, Wynn Interactive have also declared to have secured market access in nine states. This is yet to be officially confirmed as some of these states, such as Florida and Massachusetts, have not legalised online activity yet while Illinois is still experiencing several changes for Wynn’s access to take effect. The other five states are still in discussion but progress should be made in the near future. 

Matt Maddow, CEO at Wynn, is acting as Wynn Interactive’s chairman while BetBull’s Sadok Kohen has been named president (depending on a recount in Pennsylvania). Meanwhile, Ellen Whittemore (Wynn VP), Craig Billings (ex-NYX Gaming chair) and Norbert Teufelberger (ex-Bwin.party CEO) will make up the team’s directors. 

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