Caesars Entertainment has announced an agreement to acquire the operations of WynnBET‘s Michigan iGaming business and a long-term extension of iGaming market access rights with the Sault Ste. Marie Tribe of Chippewa Indians. The acquisition allows Caesars access to the Sault Tribe’s iGaming skins, enabling it to operate additional digital brands in Michigan.
Existing WynnBET customers will be transitioned to Caesars’ Michigan iGaming platform, pending regulatory approvals. Wynn and Caesars will receive non-cash consideration, including extinguishment, reductions, and assignment of certain contractual obligations related to both parties’ businesses.
Matt Sunderland, SVP & Chief iGaming Officer for Caesars Entertainment, said: “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.”
The Sault Tribe currently owns and operates Kewadin Casinos, which consist of five land-based casinos located throughout the Upper Peninsula of Michigan. “We are honored to work with the Sault Ste. Marie Tribe of Chippewa Indians and look forward to growing with them in Michigan,” added Sunderland.
WynnBET’s iGaming operations provide Caesars with an opportunity to expand further into one of the largest iCasino markets in the U.S. while continuing to operate both Caesars Sportsbook and Caesars Palace Online Casino.
Caesars intends to transition the WynnBET iCasino operations in Michigan later this year to one of the flagship gaming brands within the Caesars portfolio. “Caesars is committed to a seamless transition and premium customer experience for current WynnBET iGaming customers,” the casino operator said in a statement.
“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.
The move comes as Wynn reduces its footprint in online gaming and sports betting. Wynn’s sports betting app is shutting down its online wagering operations in several states. Last August, Wynn said it thought there were “higher and better uses of capital deployment” than “the continued requirement for outsized marketing spend through user acquisition and promotions in online sports betting.”
Financial terms of the Michigan transaction weren’t disclosed. The deal was revealed a week after Wynn’s interactive unit sold its New York sports betting license to Penn Entertainment for $25 million, paving the way for ESPN BET’s entry into the Empire State.
It was also announced along with Caesars’ Q4 and 2024 results. Caesars has disclosed Q4 2023 net revenues of $2.83 billion, a slight increase from the previous year’s Q4 figure of $2.82 billion but a decrease from the Q3 revenue of $3 billion. Meanwhile, full-year net revenue for 2023 stood at $11.5 billion, up from the $10.8 billion recorded in 2022.
Original article: https://www.yogonet.com/international/noticias/2024/02/21/70923-caesars-acquires-wynn-39s-michigan-igaming-operations
