WynnBET will be leaving the state of Michigan. It was announced Tuesday that Caesars Entertainment has agreed to acquire WynnBET’s iGaming and sports betting license in the state.
The move will give Caesars access to the WynnBET Michigan Online Casino license provided by the Sault Ste. Marie Tribe of Chippewa Indians, which owns and operates Kewadin Casinos.
The agreement also includes the sportsbook license, Wynn told fellow Catena Media publication, Bonus.com.
This agreement is still pending regulatory approval by the Michigan Gaming Control Board. Caesars announced on its Q4 investor call that the plan is to launch the new iGaming platform in Michigan before the end of 2024.
Caesars obtains second online casino license
With the deal, Caesars gets access to the Sault Tribe’s iGaming skins, enabling Caesars to operate additional digital brands in Michigan.
When Caesars takes over the new operation, existing WynnBET customers will be transitioned to Caesars’ Michigan iGaming platform.
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 Matt Sunderland, SVP & Chief iGaming Officer for Caesars Entertainment, in a press release.
“We are honored to work with the Sault Ste. Marie Tribe of Chippewa Indians and look forward to growing with them in Michigan.”
Caesars already holds the Michigan online casino license of the Grand Traverse Band of Ottawa and Chippewa Indians. They operate Turtle Creek Casino.
Caesars operates Caesars Palace Casino Michigan, which it launched as a standalone online casino application in August of 2023. Caesars also has a casino option as part of Caesars Sportsbook Michigan.
With this latest development, Caesars will have three different iGaming options for customers in Michigan. It is important to note that both the online casino on the Caesars sportsbook app and the one on the Caesars Palace app are allowed in Michigan under one license.
Caesars said it intends to launch this new WynnBet acquisition as its own standalone brand in Michigan, separate from Caesars Palace and Caesars Sportsbook.
The hope is to transition the WynnBET online casino later this year to one of the flagship gaming brands within its Caesars portfolio.
“It was paramount that our next partner in iGaming possessed both expertise in the U.S. iGaming market and a history of strong partnerships in Indian country. We believe we found that with Caesars and look forward to being part of their new iCasino offering,” said Austin Lowes, Chairman of Sault Ste. Marie Tribe of Chippewa Indians, in a press release.
Caesars growing in the online casino market in Michigan
Caesars has established itself as a top-five online casino in Michigan over the last half of 2023 and into 2024.
Carrying a lifetime share of 3.7% in the Michigan online casino revenue market, the company has amassed $176.4 million over its lifetime in the state.
However, Caesars has recorded at least $9 million in monthly revenue for three consecutive months. That includes $10.2 million in January, a new monthly record for the operator. That represented a 5.6% market share for the month.
WynnBet amassed $156.9 million in online casino revenue over its lifetime in Michigan. However, WynnBet has been trending in the wrong direction throughout 2023 while closing operations around the state.
Wynn peaked with a 3.7% market share in February 2023, but that dropped to just 1.6% in November. January’s $3.3 million in revenue accounted for just 1.8% of the market share in Michigan.
In August, WynnBet announced plans to close online operations in eight different states. At the same time, it put Michigan’s operations “under review.”
Wynn never disclosed what that term meant or what it needed to do for it to sustain operations in the state. But, online casino revenue was a clear driving factor, as WynnBet’s monthly online sports betting market share in Michigan has fallen below 0.1% in the state.
As of last week, only Michigan and Arizona still had online operations for WynnBet. It’s clear that Wynn was ready to get out of the online gambling industry.
