Wynn Resorts cancels plans to spin off interactive business12th November 2021 3:27 pm GMT
New York-listed casino and sportsbook operator Wynn Resorts has terminated its proposed business combination with special purpose acquisition company (SPAC) Austerlitz Acquisition Corporation I.
Wynn had entered into a deal in May to spin off its Wynn Interactive division, which would have seen Austerlitz combine with and be renamed as Wynn Interactive, with its stock trading on New York's NASDAQ stock exchange.
The two companies have now mutually agreed to terminate their plan of merger with immediate effect.
“With our continued roll out of product features and planned new state launches, including New York, we remain excited about WynnBET’s future,” said Wynn Interactive CEO Craig Billings, who will take over as CEO of Wynn Resorts earlier next year. “As we discussed on the Wynn Resorts, Limited third quarter earnings conference call earlier this week, in light of elevated marketing and promotional spend in the sports betting industry, we are pivoting our user acquisition efforts to a more targeted ROI-focused strategy.
“In so doing, we expect the capital intensity of the business to decline meaningfully beginning in the first quarter of 2022. WynnBET’s best days lie ahead of us.”
Wynn Interactive operates under the WynnBET, WynnSLOTS, and BetBull brands, with WynnBET currently live in Arizona, Colorado, Indiana, Michigan, New Jersey, Tennessee and Virginia.
Shares in Wynn Resorts Ltd (NASDAQ:WYNN) were trading marginally lower by 0.33 per cent at $94.07 per share in New York earlier Friday.