The future of legal sports betting in the Old Line State will be one operator smaller.
Maryland’s Sports Wagering Application Review Commission (SWARC) met Wednesday and was updated on the recent news that WynnBET is withdrawing from eight states in which it is active.
According to regulatory staff, WynnBET was awarded a Maryland sports betting license for mobile wagering in December, but the operator had yet to launch. Those staffers now plan to work with the company on the steps necessary to relinquish its permit.
“Sort of a late-breaking development, and doesn't appear to require any action on our part at this time,” SWARC Chairman Tom Brandt said during the meeting. “But it's well that we're… advised as to what's happening in the market that we've been a part of.”
Pulling back
There are 11 online sports betting sites authorized and operational in Maryland, in addition to 10 brick-and-mortar facilities that take bets. WynnBET, however, will not be part of the state's sports-betting scene.
Wynn Resorts Ltd. announced last week that it was closing its online sportsbook, WynnBET, in certain jurisdictions. Those eight states included Arizona, New Jersey, and Virginia, with the company adding that its Nevada and Massachusetts operations would continue and that its business in New York and Michigan was under review.
One of the deciding factors for Wynn was maintaining mobile wagering in states where it has brick-and-mortar casinos, as WynnBET has failed to carve out a big share of the market as an online operator alone.
The company is also keen on jurisdictions that have legalized online casino gambling, which remains far more niche than legal sports betting in the U.S. While Maryland is studying the possibility of legal iGaming, it has yet to take the plunge.
“In light of the continued requirement for outsized marketing spend through user acquisition and promotions in online sports betting, we believe there are higher and better uses of capital deployment for Wynn Resorts shareholders,” said Julie Cameron-Doe, Wynn’s chief financial officer, in a press release. “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.”
