(Reuters) – Casino operator Wynn Resorts said on Friday that online sports betting platform WynnBET and iGaming are closed in some US states due to a lack of clear rules and high customer acquisition costs.
The company said it has suspended operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia. The decision to pull out of West Virginia comes two months after it launched WynnBet in the state.
However, Wynn said operations in Nevada and Massachusetts will continue unaffected, while operations in New York and Michigan remain under review.
Wynn’s Chief Financial Officer Julie Cameron-Doe cited the lack of iGaming legislation and the ongoing requirements of huge marketing spending in online sports betting to make the decision.
Shares of the company fell about 4% in afternoon trading.
WynnBET is part of majority-owned subsidiary Wynn Interactive, which was expected to merge with Austerlitz Acquisition Corp I, however, the deal was finalized in November 2021.
On Wednesday, Wynn Resorts posted second-quarter results above Wall Street estimates, as its Las Vegas and Macau properties saw growth in gaming, dining and hotel bookings.
(Reporting by Ananya Maryam Rajesh in Bengaluru; Editing by Pooja Desai and Anil D’Silva)