Wynn Resorts has announced its decision to shut down online sports betting operations in New Jersey and seven other states due to the need for reallocation of capital for more profitable ventures.
According to Chief Financial Officer Julie Cameron-Doe, the company believes that there are better uses for capital deployment than continuing to invest in online sports betting. The high costs associated with marketing and promotions, as well as the absence of iGaming legislation, have played a significant role in this strategic shift. Additionally, Wynn Resorts has recognized the presence of numerous other attractive investment opportunities globally.
The casino operator, headquartered in Las Vegas, intends to cease operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. However, the company is still reviewing its operations in New York and Michigan. As for Nevada and Massachusetts, they will not be affected by this decision, and operations will continue as usual.
Following the announcement, the company's shares experienced a nearly 4% decline.
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