Wynn Absorbs BetBull to Create New Sports Betting Joint Venture
The latest development of a strategic partnership between Wynn Resorts and the European betting operator BetBull that began in 2018 has spawned a new player in the US online gambling market: Wynn Interactive.
But will the absorption of BetBull help catapult WynnBet into the upper echelon of online gaming operators in the US? Only time will tell.
Wynn Has Been Hot and Cold Towards Online Gambling
Wynn is a late entrant to the US online gambling market.
Former CEO Steve Wynn was an on-again-off-again fan of online gambling, changing his tune repeatedly over the years.
In 2009, he was anti-online gambling. In 2011 he supported it. But when it mattered, when US states were legalizing online gambling, he once again opposed it.
That kept the company from moving into the online arena for several years. That means Wynn is now playing catchup, as its peers have a substantial headstart.
WynnBet and BetBull Deal Two Years in the Making
As BettingUSA reported in 2018, Wynn Resorts and BetBull entered into a strategic agreement to leverage Wynn’s brand name in the US and use BetBull’s online betting experience to pave the way for an eventual joint venture.
From the 2018 Wynn press release:
The strategic partnership will position both parties to capitalize on the developing US opportunity by combining Wynn Resort’s nationally recognized brand with BetBull’s digital sports betting operations capabilities and technology.
Under the terms of the 2018 partnership, Wynn Resorts invested equity in acquiring a 22.5% stake in the European company.
Wynn and BetBull Joint Venture Promises Major US Expansion
Fast-forward two years, with Wynn Resorts announcing the entire acquisition of BetBull and the launch of an $80 million joint venture company. Per the agreement, BetBull has been absorbed into the new Wynn Interactive sports betting brand, and ownership will be split 71% to 29% (in favor of Wynn shareholders).
The $80 million investment will help expand the Wynn Interactive brand into newly opened US markets.
The brand already has the green light to launch in:
The brand also has license applications pending in Virginia and Tennessee.
In August, Wynn quietly launched its WynnBet brand in New Jersey. WynnBet is the group’s digital gaming division responsible for its mobile sportsbook and casino app.
Wynn Partnership with NASCAR
In October, WynnBet signed a multi-year national sports betting partnership with NASCAR. Under the terms of the deal, Wynn became NASCAR’s Authorized Gaming Operator and will collaborate with NASCAR to create and promote sports betting experiences for racing fans across the country.
In a press release, NASCAR Senior VP and Chief Digital Officer Tim Clark said:
“We’re excited to partner with such a deeply experienced and innovative team to drive engagement and expand our sports betting offerings. Wynn is a trusted and iconic brand and our new relationship advances NASCAR’s position in the rapidly evolving gaming space while delivering fans with yet another live-in race engagement tool.”
NASCAR has a considerable presence in Virginia and will most likely help promote the Wynn brand as it expands into the state. If more southern states eventually legalize sports betting, the NASCAR deal will be even more lucrative, helping Wynn get a foot in the door through its connection to one of the most popular sports in the region.
Offsetting COVID-19 Damage
Wynn’s expansion into sports betting couldn’t come at a better time for the company. It took a substantial hit in the third quarter of 2020, with revenue down 77.5% to $370.5 million, compared to the $1.65 million reported in the third quarter of 2020. Net loss stood at $758.1 million.
Like many brick-and-mortar casinos, Wynn Resorts closed its properties during the height of the COVID-19 pandemic. To offset some of the damage, Wynn has been forced to reduce costs, including labor, and has let some 7,400 people around the world go.
The Wynn Encore is only running five days a week, and the Encore Boston Harbor has to shut by 9.30 every night, as per Massachusetts COVID-19 restrictions.
Wynn has been looking for other ways to minimize damage caused by the pandemic. Including plans to set up COVID testing labs in Las Vegas that could turn around test results in 5 – 6 hours.
“This could be one of our opportunities as we get through this (pandemic) to get entertainment going again, to get conventions going again,” CEO Matt Maddox said in interview to RJ this week. ”It’s going to be a good blueprint to help get Las Vegas back.”
Tania brings over 10 years of experience as a gambling industry reporter to BettingUSA.com, providing frequent news coverage and coverage of current events.
