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WynnBet plans to cease its Massachusetts operations, marking the platform’s ninth US market exit.

In the Massachusetts Gaming Commission’s meeting agenda for its 1 February public meeting, the regulator said an item of discussion would be a WynnBet Notice of Intent to Cease Operations.

The Wynn Resorts-operated sports betting and iGaming platform dramatically slashed the scale of its operations in August 2023, announcing it would be exiting eight of its 12 active markets.

These comprised Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia.

At the time, the business said its presence in Nevada and Massachusetts would be unaffected while New York and Michigan would be “under review”.

For the exits, the company blamed the “continued requirement” for outsized marketing spend through user acquisition and promotions.

“We believe there are higher and better uses of capital deployment for Wynn Resorts shareholders,” said CFO Julie Cameron-Doe.

“While we believe in the long-term prospects of iGaming, the dearth of iGaming legislation and the presence of numerous other investment opportunities available to us around the globe have led us to the decision to curtail our capital investment in WynnBET to focus primarily on those states where we maintain a physical presence.”

Will WynnBet stick it out in New York?

The most significant market that WynnBet remains active in is New York, the largest US sports betting state by GGR.

However, WynnBet remains far behind the market leaders in the state. In December 2023, the operator reported just $9.2m in total handle, resulting in negative GGR of $323,464.

This stands at just 1.1% of market leader FanDuel’s total $834.5m handle for the month.

Additionally, New York sports betting operators are saddled with a 51% GGR tax, representing one of the highest in the country.

However, Wynn Resorts is currently in the running for one of the state’s upcoming three downstate casino licences.

As such, Wynn might be eyeing potential omni-channel opportunities in the event its bid is successful.

The state is also currently considering iGaming legislation which could significantly enhance the business opportunity.

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