Wynn Resorts Ltd. is shutting down its sports betting app in eight states, becoming the latest company to retrench in an industry being dominated by FanDuel and DraftKings Inc.
In a statement, the company said its app, WynnBet, was pulling out of markets such as New Jersey, Virginia and Arizona, citing the need to spend large sums of money on marketing to acquire sports-betting customers and the lack of states also legalizing online casino games like blackjack and roulette that can make the business more profitable.
Wynn, which owns casinos in Nevada and Massachusetts, is keeping the app active in those two states. Operations in New York and Michigan are under review.
WynnBet had less than 1% market share in online sports betting, according to the research firm Eilers & Krejcik Gaming LLC. Wynn said it was pulling back from online betting due to “numerous other investment opportunities available to us around the globe.”
A growing number of the sports-betting apps have shut down, unable to compete in crowded, hyper-competitive landscape. Last month, Fox Corp. said it’s closing Fox Bet, a partnership with FanDuel-owner Flutter Entertainment Plc. Last year, MaximBet, a collaboration between a gaming company and the men’s magazine, shut down, as did a sportsbook launched by the streaming service FuboTV Inc.
