Wynn Now Banking On Online Casino Revenue

Briony O’Neill -
Casino and hospitality giant Wynn Resorts has cited significant ambitions for its Wynn Interactive sports betting and online gaming division to be a possible future mitigator of the damage caused by the ongoing health crisis to its Q3 performance. The casino group saw operating revenue plummet by a devastating 77% in the lead-up to the release of its results for the third quarter of 2020.

Wynn Resorts chief executive Matt Maddox as part of an investor-update elaborated quite a bit on the progress made so far relating to the advancing of the Wynn Interactive brand. Q3 saw online sports as well as online casino offerings launched in New Jersey, explained Maddox, with access to more markets also currently in the pipeline for the U.S. Currently in progress are licence applications for both Tennessee and Virginia, confirmed the CEO.

Losses All Around For Q3

Wynn Resorts reported the following losses for Q3:

The massive net loss, explained Wynn, includes a provision made for income taxes payable in the amount of $407.4 million. These forward projections were mainly caused by an increase in so-called valuation allowance when deferred against tax assets no longer anticipated to come to fruition.

Progress Even Amid Crisis

Despite the devastating and ongoing impact of the global health crisis, said the casino company by way of its Q3 report, the operator remained encouraged by the progress it did manage to make over the course of this period.

The company furthermore confirmed anticipating some relief in terms of restrictions previously imposed in Macau – historically a key market for the casino brand. Visitation restrictions and border-pass controls are gradually starting to ease up, which according to Wynn has allowed the operator to achieve an EBITDA break-even for the month of October.

Wynn also declared itself confident in the likelihood of more and further loosening of regulatory and travel restrictions in Macau – a change the company said will further help boost its ongoing global recovery.

The operator concluded by saying that it now plans on looking positively ahead to leveraging a digital presence while at the same time working towards a recovery in a slowly resurging land-based casino industry.