As online gambling continues to grow, more and more of the biggest brands in retail online gambling are taking it even more seriously. Wynn Resorts, one of the most gambling operators on the planet, is one of the companies that is doubling down on its efforts to claim a share of the iGaming markets. Last Monday, the operator announced that it is merging Wynn Interactive with Austerlitz Acquisition Corp I, a special purpose acquisition company (SPAC).
This deal will take the online gambling platform public with the combined company having a $3.2 billion valuation. Wynn Resorts will retain 58 percent ownership of Wynn Interactive as well as 70 percent of the voting rights in the entity. In essence, it will still be a fully-controlled subsidiary of Wynn Resorts trading on the NASDAQ Stock Market under the name Wynn Interactive Limited (WBET). Austerlitz, on the other hand, will inject $640 million into the new entity.
“We are confident that this transaction will unlock the tremendous potential of Wynn Interactive to further accelerate growth and enable the business to capture the massive opportunity in North America.”Chief Executive Officer Matt Maddox.
If everything goes according to plan, the transaction will close by the end of 2021 after which the operator can fully focus on growing this particular business. iGaming is a highly competitive vertical and the company will have to bring its A-game in order to survive.
As it stands, Wynn Interactive is offering its services in a total of 15 states – WynnBET is active in six of those states. There are nearly two dozen states that have legalized some form of sports betting and more are considering following in their footsteps. Expansion in as many of these states as possible is certainly one of the things that Wynn Interactive is aiming for.
Wynn Resorts has projected that online gambling, in general, will become just as big as the retail gambling sector. Some of the figures that are in the air put online revenue at a whopping $708 million in 2023, which is in reference to a 5% to 7% share of the U.S. market. Its current annual run rate is about $100 million, executives said on a conference call for investors. Wynn Interactive will also take over the sportsbooks at the Wynn properties in Las Vegas which means that it will also be benefiting from the rapidly growing sports betting market.