{"id":398305,"date":"2022-01-24T02:00:24","date_gmt":"2022-01-23T23:00:24","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/wynn-resorts-looks-to-sell-online-sports-betting-biz-at-deep-discount-source\/"},"modified":"2022-01-24T02:00:24","modified_gmt":"2022-01-23T23:00:24","slug":"wynn-resorts-looks-to-sell-online-sports-betting-biz-at-deep-discount-source","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/wynn-resorts-looks-to-sell-online-sports-betting-biz-at-deep-discount-source\/","title":{"rendered":"#Wynn Resorts looks to sell online sports betting biz at deep discount: source"},"content":{"rendered":"<p>&#8220;<strong>#Wynn Resorts looks to sell online sports betting biz at deep discount: source<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Wynn Resorts is looking to unload its online sports-betting business at a steep discount as the fledgling niche faces painful losses from stiff taxes and costly promotions needed to lure customers, The Post has learned.<\/p>\n<p>The Las Vegas-based casino giant is quietly shopping its Wynn Interactive unit \u2014 operator of the WynnBet online gaming <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a> \u2014 and has slashed the asking price to $500 million after floating a $3 billion valuation less than a year ago, a source close to the situation told The Post.<\/p>\n<p>The fire sale comes less than six months after Wynn was publicly readying a splashy spring launch for WynnBet, signing up NBA legend Shaquille O\u2019Neal as a brand ambassador. O\u2019Neal even sold his minority stake in the Sacramento Kings NBA team so he could work closely with Wynn without breaking the league\u2019s gambling rules.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/ceo-matt-maddox.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Matt Maddox smiling\" class=\"wp-image-20932675\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/ceo-matt-maddox.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/ceo-matt-maddox.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/ceo-matt-maddox.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Outgoing CEO Matt Maddox has expressed reservations about WynnBet\u2019s customer acquisition costs.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>\u201cI am so excited to take WynnBet to new heights,\u201d O\u2019Neal said in an August press release. \u201cMobile sports betting is having a major moment, and I believe that WynnBet will be a powerful force in the industry.\u201d<\/p>\n<p>A few months later in November, however, Wynn said it was scrapping plans it disclosed in May to merge Wynn Interactive with Austerlitz Acquisition Corp. \u2014 a blank-check company owned by Bill Foley, the billionaire owner of the Las Vegas Knights.<\/p>\n<p>In addition to creating a public company with a $3.2 billion valuation, the deal would have armed WynnBet with $640 million in cash for marketing. After revealing that the app was on track to burn $100 million in both the third and fourth quarters, outgoing CEO Matt Maddox signaled he wasn\u2019t interested in throwing good money after bad.<\/p>\n<p>\u201cThe market is really not sustainable right now,\u201d Maddox said on a Nov. 10 earnings call. \u201cCompetitors are spending too much to get customers. And the economics are just not something that we\u2019re going to participate in.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/draft-kings-2.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"DraftKings app displayed on a smartphone against the a logo in the background\" class=\"wp-image-20932678\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/draft-kings-2.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/draft-kings-2.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/draft-kings-2.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>WynnBet faces stiff competition from longer-established wagering platforms like DraftKings.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>Shortly thereafter, Morgan Stanley analysts said they valued WynnBet at $700 million, adding that they only expected the app to win a 2.5% share of the North American market.<\/p>\n<p>Meanwhile, FanDuel and DraftKings, which together control a majority share of the online sports-betting market, have lately dangled credits as high as $1,000 to sign up new members. Caesars has likewise staged aggressive promotions in New York despite a crushing state tax rate of 51% on online gaming revenues.<\/p>\n<p>On Friday, the New York Gaming Commission said mobile sports betting was off to a brisk start in its first week, with more than $600 million in bets taken by Caesar\u2019s, FanDuel, DraftKings and BetRivers. Gaming analysts said that the massive haul was partly the result of \u201cheavy promotion from the operators.\u201d <\/p>\n<p>Wynn has a New York online betting license but hasn\u2019t yet launched its service.<\/p>\n<p>\u201cI personally\u00a0am surprised at the level of promos we are seeing considering the 51% tax rates,\u201d said Barry Jonas, an analyst at Truist. \u201cI think it has to tone down long-term if there is any hope of seeing profitability in the state.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/wynn-bet-01.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"An ad for WynnBet featuring Shaquille O'Neal\" class=\"wp-image-20932680\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/wynn-bet-01.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/wynn-bet-01.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/wynn-bet-01.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Shaquille O\u2019Neal sold off his stake in an NBA team to avoid any conflicts of interest as a WynnBet pitchman.<\/figcaption><figcaption><span class=\"credit\">(wynnbet.com)<\/span><\/figcaption><\/figure>\n<p>It\u2019s a long way from last spring, when online sports betting companies were trading as high as 25 times projected revenues as tech investors including Cathie Wood\u2019s Ark Invest hyped their stocks, arguing that the pandemic was poised to create an explosion in mobile gaming. <\/p>\n<p>Now, even the highest-valued among them are trading closer to six times. DraftKings, the largest listed, pure-play sports-betting company, went from trading in the mid-$50s in May to the low $40s in November. On Friday, its shares closed at $19.46.<\/p>\n<p>A tipping point, Jonas said, was when DraftKings in September made an unsuccessful, $20 billion offer for British bookmaker Entain, indicating it wanted to gain more exposure outside the newer US market.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"632\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/casino.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Slot machines at a Wynn Resorts casino \" class=\"wp-image-20932682\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/casino.jpg?quality=90&amp;strip=all&amp;w=2048 2048w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/casino.jpg?quality=90&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/casino.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/casino.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Talk about a gamble: It costs as much as $500 to acquire an online gaming customer, one source tells The Post.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>A Wynn spokesman said the company wouldn\u2019t comment on what he called market speculation and rumor. \u201cWe were clear on our last earnings call about the current highly competitive nature of the online sports betting market and our desire to operate that business in way that will actually create long-term shareholder value,\u201d he said in a statement to The Post.<\/p>\n<p>Meanwhile, banking sources said the most logical suitors for Wynn Interactive, which in addition to WynnBet owns Wynn Slots and BetBull, are Fanatics and Penn Interactive. But neither has displayed clear interest, sources added.<\/p>\n<p>That doesn\u2019t mean a deal won\u2019t happen. David Katz, a gaming analyst at Jefferies, notes that most players claim the taxes and promotions, however punishing, haven\u2019t surprised them. <\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/draftkings.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A lighted DraftKings logo\" class=\"wp-image-20932928\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/draftkings.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/draftkings.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/draftkings.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>DraftKings\u2019 plummeting share price should give the industry pause.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>\u201cThe operators are constantly telling us they have the mathematical models that give\u00a0them the intelligence that they are spending money wisely \u2014 and the Street doesn\u2019t believe them,\u201d Katz said. \u201cThe way the Street sees the future has changed in the last three to six months \u2014 there was certainly a lot of enthusiasm but the winds changed swiftly.\u201d<\/p>\n<p>A key question, analysts say, is whether the steep promotions will start to pay off soon. Katz estimates that it costs $300 to $500 on average to acquire an online gaming customer. <\/p>\n<p>\u201cI don\u2019t think anyone knows how sticky customers are,\u201d Katz said. \u201cTime will show who is right.\u201d\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/01\/23\/wynn-resorts-looks-to-sell-online-sports-betting-biz-at-deep-discount-source\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Wynn Resorts looks to sell online sports betting biz at deep discount: source&#8221; Wynn Resorts is looking to unload its online sports-betting business at a steep discount as the fledgling niche faces painful losses from stiff taxes and costly promotions needed to lure customers, The Post has learned. The Las Vegas-based casino giant is quietly&#8230;<\/p>\n","protected":false},"author":1,"featured_media":398306,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/01\/wynn-interactive.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[124675,72965,100065,118729,70383,77164,80933],"class_list":["post-398305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-1-23-22","tag-caesars-entertainment","tag-draftkings","tag-fanduel","tag-shaquille-oneal","tag-sports-betting","tag-wynn-resorts"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/398305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=398305"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/398305\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/398306"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=398305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=398305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=398305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}