Last week, WynnBet closed its online operations in eight states. And here in Michigan, WynnBet is electing to take things under review.
So, Michigan could be losing one of its online casino and online sportsbook licenses.
Just what will WynnBet need to see in the numbers to keep operations running in Michigan? We broke it down below.
What states is WynnBet shutting down?
WynnBet is assured to shut down operations in eight states. Those states are:
- Arizona
- Colorado
- Indiana
- Louisiana
- New Jersey
- Tennessee
- Virginia
- West Virginia
New York and Michigan are the two states that are “under review” by WynnBet. Only Nevada and newly-launched Massachusetts will remain in operation for certain. Both of those states have WynnBet retail sportsbooks to complement the online product.
A look at WynnBet’s online sportsbook numbers
Not all states provide online revenue and betting numbers by operator. What we have available is information on six states where WynnBet operates. That includes WynnBet Sportsbook MI.
Here’s the breakdown by online revenue:
| State | 2022 Online Revenue | 2023 Online Revenue | 2023 Market Share |
|---|---|---|---|
| Arizona | $7,056,413 | $1,361,867 (through May) | 0.6% |
| Indiana | $1,889,313 | $584,602 | 0.3% |
| New Jersey | $1,790,784 | $-235,617 (through June) | N/A |
| New York* | $6,226,680 | $3,268,840 (through July) | 0.4% |
| Michigan* | $1,799,692 | $567,353 (through June) | 0.3% |
| Massachusetts*** | (Launched March 10, 2023) | $4,819,327 (through July) | 2.1% |
*State under review by WynnBet
***WynnBet remaining open
They key numbers to focus on are that only one state has a market share over 1% in both categories. That is Massachusetts, which is one of the two states remaining in operation.
Based solely on the sports betting numbers, Michigan fits in with the states where WynnBet is closing operations.
WynnBet’s online casino impact in Michigan
The big factor for WynnBet remaining in Michigan comes down to online casino revenue.
Under a partnership with Sault Ste. Marie Tribe of Chippewa Indians, which runs Kewadin Casinos, WynnBet Casino MI has tallied $131.8 million of revenue over its lifetime in the state. That ranks sixth of the 15 operators in Michigan.
It also equates to 3.6% of the lifetime revenue share in Michigan.
Through June, WynnBet’s 2023 revenue is $30.2 million. That puts it at 3.2% of the market share for the year. Despite the market share dip, WynnBet is well on pace to surpass its $53.8 million in revenue for all of 2022. The 2022 mark was already a 12.6% increase from the $47.8 million it generated in 2021.
Michigan is the only online casino that provides a clear picture of what WynnBet is doing.
In New Jersey, retail casinos are able to operate multiple online casinos. WynnBet is one of seven operators partnered with Caesars Atlantic City, so it is difficult to say the impact it had in the state. Clearly it wasn’t enough for WynnBet to feel like it should remain in operation.
Collectively, Caesars Atlantic City was responsible for 9.6% of the state’s online casino market share.
What is WynnBet’s magic number?
The magic number for WynnBet looks to be anything over 2% of market share.
Unless you are New York. New York is New York, even with its outrageous tax rates.
But, Massachusetts is staying in operation due to the deemed success WynnBet is having in the state. That’s with just over 2% of the sports betting revenue market share. And that’s where percentage points equate a little more than $2 million dollars.
WynnBet Online Casino may not have a big percentage in Michigan, but each percentage point is worth far more millions than a percentage point in sports betting. Each percent in the online casino market is worth around $10 million right now.
In Michigan, WynnBet’s sports betting fits the bill for the state to be axed.
However, the online casino revenue being over 3% is the biggest number WynnBet has available right now.
Its 3.2% of online casino revenue in 2023 equates to over $30 million. That’s more than 6x greater than Massachusetts’ sports betting revenue in 2023 which is keeping WynnBet in the state. That’s also with seven months of data for Massachusetts and only six from Michigan.
Online casinos have yet to plateau in Michigan either. Revenue continues to outpace 2022, with no indicators of that slowing down.
It seems to me that staying in Michigan makes financial sense for the company.
