Wynn Interactive Withdraws New Jersey iGambling Request

A decade ago, Wynn Interactive withdrew from Atlantic City’s casino market in favor of Las Vegas, but in 2013 the company took preliminary steps towards joining New Jersey’s iGaming industry following regulation in November that year. The idea was that Wynn could form a partnership with Caesars Interactive to offer online gambling in the Garden State, but that possibility has now ended after the operator sent a letter to the Division of Gaming Enforcement (DGE), stating:
“At this time, Wynn does not wish to proceed with its application. Therefore, kindly accept this correspondence as a formal request to withdraw such application.”
Wynn Resorts has had an on-off relationship with online gambling over the years, and soon after the company was granted permission to offer iGaming with both Caesars and 888, Steve Wynn backed away from the business opportunity and launched a scathing attack on the industry. The move was seen as Steve Wynn aligning his interests more closely with those of Las Vegas Sands CEO Sheldon Adelson, and amongst the chief concerns he expressed at the time was the possibility of minors bypassing technology to access Internet gambling sites.
Nevertheless, Steve Wynn also said he didn’t see much money making opportunities in the business right now, and he said any that any that did exist would be further diminished by restrictive iGaming taxes. Case in point, last year Morgan Stanley reduced its five-year forecast for the US iGaming market to 2.7 billion from its previous estimate of $5 billion, stating that politicians remain unimpressed by the limited tax revenues offered by the industry.
In 2014, New Jersey generated $122 million in online revenues, and this year revenues are currently at $96.7 million, representing a 15.6% increase so far over last year. While online gambling overall is improving overall, iPoker has continued its steady decline and in August produced $1.98 million, 12% lower than the same month in 2014, and now accounting for roughly one-fifth of overall online revenues.