Wynn Resorts looking to sell sports-betting business at "steep discount"

Wynn Resorts is "looking to unload" its online sports-betting business at a "steep discount as the fledgling niche faces painful losses from stiff taxes and costly promotions needed to lure customers," according to Josh Kosman of the N.Y. POST. The company is "quietly shopping" its Wynn Interactive unit -- operator of the WynnBet online gaming app -- and has "slashed the asking price to $500 million after floating a $3 billion valuation less than a year ago." This move comes "less than six months" after Wynn was "publicly readying a splashy spring launch for WynnBet." A few months later in November, however, Wynn said that it was "scrapping plans it disclosed in May to merge Wynn Interactive with Austerlitz Acquisition Corp. -- a blank-check company" owned by Golden Knights Owner Bill Foley. In addition to creating a public company with a $3.2B valuation, the deal would have "armed WynnBet with $640 million in cash for marketing." After revealing that the app was "on track to burn $100 million in both the third and fourth quarters," outgoing Wynn Resorts CEO Matt Maddox signaled he "wasn’t interested in throwing good money after bad." Fanatics and Penn Interactive are the "most logical suitors" for Wynn Interactive, which in addition to WynnBet owns Wynn Slots and BetBull. But neither has "displayed clear interest." That "doesn’t mean a deal won’t happen," though (N.Y. POST, 1/24).

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