As the landscape of online sports betting continues to evolve, Wynn Resorts has made the strategic decision to retract its WynnBet digital operations from the state of Massachusetts. Effective immediately, players who have been using the platform are being given a 30-day window that began yesterday, February 12, to withdraw any remaining funds from their WynnBet accounts.
Despite this rollback, Wynn Resorts maintains a foothold in the state’s betting sector with its continued operation of retail sports betting venues. The Encore Boston Harbor casino, owned by Wynn Resorts, will still offer patrons the opportunity to place wagers at its land-based sportsbook and utilize the on-site betting kiosks.
This announcement comes on the heels of Wynn Resorts’ declaration last August, which outlined a plan to reduce the presence of WynnBet across the United States. The scale-back strategy impacts several states beyond Massachusetts, including Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. As for the brand’s ongoing operations, WynnBet will remain active in Nevada, New York, and Michigan. However, Julie Cameron-Doe, the Chief Financial Officer of Wynn Resorts, recently noted that the operations in New York and Michigan are still under examination and review.
Interestingly, the initial strategy conceived last summer had indicated that WynnBet would persist in its Massachusetts online betting activities. However, in a change of course, Cameron-Doe confirmed last week that WynnBet’s Massachusetts operations would also be ceasing. During her statement, Cameron-Doe emphasized the company’s commitment to pursuing the most favorable outcomes for its shareholders, with efforts to monetize the brand’s assets in concert with the legal landscape and market opportunities.
Statistical data from Massachusetts presents WynnBet’s position within the industry prior to its withdrawal. In a comparison showcasing the struggle to compete with market leaders, WynnBet reported a revenue of $870,876 from $12.5 million in online sports bets during December, whereas the frontrunner DraftKings boasted a staggering $29.9 million in revenue from $316.9 million in online wagers.
As a whole, the Massachusetts betting market recorded consecutive monthly highs in December with players betting a total of $658.7 million. Notably, the majority of bets were placed online, totaling $643.2 million. The impressive activity in the state generated $60.6 million in taxable revenue from sports betting for December alone, illustrating a significant monthly increase and narrowly missing the all-time monthly record set in May by just 0.7%.
The past week also brought attention to Wynn Resorts’ overall financial fortunes, with reports highlighting a successful 2023. The revenue for Wynn Resorts soared to $6.63 billion, demonstrating a robust year-on-year increase of 73.9%; it’s a new zenith in terms of the operator’s profitability. Growth was experienced across all the company’s properties, but it was the Macau region, where the Wynn Palace and Wynn Macau are located, that the most substantial revenue surges took place, courtesy of the easing Covid restrictions. Macau’s operations alone accounted for an impressive $3.10 billion in the company’s revenue, a boost of 329.7% compared to the previous year.
Other areas within Wynn Resorts’ portfolio also saw an uptick. Las Vegas operations generated a 16.3% revenue increase, reaching $2.48 billion, and the revenue of Encore Boston Harbor rose by 4.2% to $865.8 million. The crowning financial achievement for Wynn Resorts in 2023 was the transformation from a loss of $423.9 million the previous year to a net profit clocking in at $730.0 million. Additionally, adjusted property EBITDAR skyrocketed by 191.4% to a record $2.11 billion.
As Wynn Resorts adjust their strategic outlook and realign their business operations, Massachusetts players must act swiftly to ensure the secure withdrawal of their funds from WynnBet’s online platform, as the digital landscape of the betting industry continues to ebb and flow with the tides of corporate decision-making.
