Caesars Entertainment is expanding its presence in Michigan after acquiring WynnBET’s online sports betting and iGaming operations for an undisclosed amount.
Alongside the acquisition, Caesars has also agreed a long-term extension of market access rights with Wynn’s partner, Sault Ste. Marie Tribe of Chippewa Indians, subject to regulatory approvals.
This sees Caesars gain access to the Sault Tribe’s iGaming skins, enabling the company to operate additional iGaming brands in Michigan, with existing WynnBET customers to be transitioned to Caesars’ iGaming platform.
Caesars is already active in Michigan’s online sports betting and iGaming market in partnership with the Grand Traverse Band of Ottawa and Chippewa, where it is live with its Caesars Sportsbook, Caesars Palace Online Casino and WSOP brands.
Wynn and Caesars will receive non-cash consideration, including extinguishment, reductions, and assignment of certain contractual obligations related to both parties’ businesses.
“As we continue to grow our iGaming franchise, the assumption of WynnBET’s iGaming operations in Michigan allows us to tap into a significant market and customer base, providing a crucial step forward in growing our digital products and offering players more ways to play,” said Caesars Entertainment senior vice president and chief iGaming officer Matt Sunderland. “We are honored to work with the Sault Ste. Marie Tribe of Chippewa Indians and look forward to growing with them in Michigan.”
Caesars intends to transition the WynnBET iCasino operations in Michigan later this year to one of its flagship gaming brands within the Caesars portfolio.
“It was paramount that our next partner in iGaming possessed both expertise in the US iGaming market and a history of strong partnerships in Indian country,” said Sault Ste. Marie Tribe of Chippewa Indians chairman Austin Lowes. “We believe we found that with Caesars and look forward to being part of their new iCasino offering.”
The Sault Tribe currently owns and operates Kewadin Casinos, which consist of five land-based casinos located throughout the Upper Peninsula of Michigan.
Michigan’s licensed iGaming operators collected record total gross receipts of $181.9 million in January, with the Grand Traverse Band of Ottawa and Chippewa contributing $10.2 million and Sault Ste. Marie Tribe of Chippewa Indians just $3.3 million.
In the state’s online sportsbook market, total gross receipts totalled $47.7 million in January, with the Grand Traverse Band of Ottawa and Chippewa contributing $987,123 and Sault Ste. Marie Tribe of Chippewa Indians a loss of $2,663.
Wynn Resorts announced last August that it would be shutting down its WynnBET online sports betting and iGaming platform, and last week sold its New York mobile sportsbook licence to PENN Entertainment for $25 million.
Shares in Caesars Entertainment Inc (NASDAQ:CZR) closed 2.02 per cent lower at $41.65 per share in New York Tuesday after the company reported its financial results for the fourth quarter of 2023.