WynnBET Is Ready To Make Some Noise

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Hey Friends,

Since the US Supreme Court ruled PASPA unconstitutional in 2018, paving the way for states other than Nevada to legalize sports gambling, the industry has seen tremendous growth.

More than 30 states and the District of Columbia have now legalized sports betting, and industry experts predict the total addressable market could be worth about $40 billion when it’s all said and done.

Companies like FanDuel and DraftKings are now worth more than $50 billion combined. In addition, the NFL is set to make $1 billion from its sportsbook agreements, and Penn National Gaming is spending $450 million to acquire a majority equity stake in Barstool Sports.

Hell, even ESPN, who long denied the obvious growth within the industry, is reportedly now looking to license their name to major sports-betting companies for “at least $3 billion over several years.”

Sports-Betting Companies Market Capitalization

1. Flutter (FanDuel parent): $32.71 billion

2. DraftKings: $20.79 billion

3. MGM Resorts: $18.15 billion

4. Caesars: $17.6 billion

5. Penn National: $10.2 billion

The interesting part? WynnBET is ready to make some noise, launching a new national marketing campaign today with brand ambassadors Ben Affleck and Shaquille O’Neal.

Here’s a look at the 2-minute spot directed by Ben Affleck and includes a cameo from Guadalupe Rodríguez, Jennifer Lopez’s mother, who famously won $2.4 million at a casino in 2004.

Wynn Resorts decided to spin off its online division, Wynn Interactive, earlier this year through a reverse merger with a blank-check company founded by Bill Foley, the billionaire owner of the NHL’s Vegas Golden Knights.

The SPAC provided Wynn Interactive with $640 million in cash for marketing expenses, allowed Wynn Resorts to maintain 58% of the company, and provided new & existing shareholders with one distinct vehicle to invest in the future of sports betting through the legendary Wynn brand.

Wynn Interactive houses three separate entities:

• WynnBET: Mobile sports betting & iGaming product

• BetBull: European sports betting & iGaming product

• Wynn Slots: Free-to-play social casino product

Their long-term goal? To own 10-15% of the lucrative sports betting market.

So far, so good. WynnBET, their mobile sports betting product, is currently live in six states — New Jersey, Colorado, Virginia, Indiana, Tennessee, and Michigan — and is running at $110 million in annualized gross revenue as of July, up from just $36 million in November 2020.

But the 2021 NFL season is set to have massive implications. As consolidation continues throughout the industry among casinos, media networks, technology companies, and more, the biggest players in the space are betting heavily on America’s most popular professional sport.

Earlier this year, the National Football League (NFL) named Caesars, DraftKings, and FanDuel as its sportsbook partners, enabling them to display league content such as game highlights and logos in their gambling apps in exchange for $1 billion.

In addition, they are also allowing four other gambling brands to buy ads during games: WynnBET, BetMGM, PointsBet, and Fox Bet. The idea is that they can create additional revenue from the category while also vetting potential advertisers and not overwhelming non-sports betting fans with content.

The result? The NFL expects to generate roughly $270 million in revenue from sports betting deals and believes that number will eventually be $1 billion-plus annually in the future.

Estimated U.S. TAM (Sports Betting & iGaming)

• 2020A: $3 billion

• 2025E: $16 billion

• 2028E: $32 billion

• 2030E: $39 billion

In the end, this isn’t a winner take all game. I think we will continue to see consolidation across the industry, but we’ll eventually end up with 4-5 premium, national brands that have considerable market share in North America.

My bet is that WynnBET is one of them. They have already secured market access in 15+ states representing over 50% of the US population, including live operations in 6 states, and have a unique, omnichannel presence via their premium casinos in Las Vegas and Boston.

I’m excited to see how WynnBET develops the social aspect of their product, as that’s something no one has quite mastered yet, but ultimately, they have an entertainment presence and the capital required to establish themselves as a key player in the space moving forward.

Have a great day, and I’ll talk to everyone tomorrow.

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