WynnBet Closes in New York, Making Way for ESPN BET Ahead of NFL Season
WynnBet has ceased operations and stopped accepting bets in New York as of Monday afternoon. This comes after ESPN BET’s parent company Penn Entertainment purchased Wynn in February for $25 million.
Strategic Acquisition and Licensing
Following the acquisition, WynnBet had been gradually shutting down operations across various states, limiting activity to New York and Michigan, where even then, bets were restricted to a maximum of $100 per user.
WynnBet’s acquisition had some additional value from Penn Entertainment, as the operator was holding a license in New York – state capping its eligible sportsbooks at nine.
The limited number of licenses includes major operators like FanDuel, DraftKings, Caesars, BetMGM, BetRivers, Bally Bet, Fanatics, Resorts World, and now ESPN BET, replacing Wynn.
Market Potential and Tax Implications
With ESPN BET gaining access to New York, the state with the largest overall handle in the country, the potential for market growth is significant.
However, New York’s effective tax rate on gross gaming revenues stands at 51%, compared to New Jersey’s 13% on adjusted gross revenue for online apps.
The high tax rate considerably impacts the profitability of sportsbooks operating in the state, even despite the large market size.
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