Wynn Resorts has indicated it is abandoning a plan to spin off its online gaming branch, Wynn Interactive, ditching a plan to merge the division with a special-purpose acquisition company to create a $3.2 billion public company.
According to a report in the Las Vegas Review-Journal, Wynn Resorts said Wynn Interactive and the SPAC, Auserlitz Acquisition Corp., mutually agreed to end the merger plan immediately.
The announcement came during an investor earnings call by Wynn Interactive CEO Craig Billings, who takes over as Wynn Resorts CEO February 1 with the departure of Matt Maddox.
“In light of elevated marketing and promotional spend in the sports betting industry, we are pivoting our user acquisition efforts to a more targeted ROI-focused strategy,” Billings said. “In so doing, we expect the capital intensity of the business to decline meaningfully beginning in the first quarter of 2022. WynnBET’s best days lie ahead of us.”
“With the elimination of the venture, we believe Wynn is likely to trade on a revenue multiple, akin to peers,” said Deutsche Bank analyst Carlo Santarelli in an investor note, retaining a price target of $131—compared to $93.95 on the day of the earnings call.
Also last week, Wynn Resorts named Ian Williams as president of Wynn Interactive. In his new role, Williams will oversee Wynn Interactive’s global day-to-day operations.
A 20-year gaming industry veteran, Williams joined WynnBET in October as chief operating officer. Prior to that, he served as president of online gaming for Churchill Downs Inc. and helped CDI’s interactive’s division develop into one of the most profitable online wagering businesses in the U.S.
Williams helped grow Churchill Downs’ horse racing advance-deposit wagering business (Twinspires.com and Betamerica.com) during his five-year tenure, profitably delivering record handle in every year with the company. He was also responsible for spearheading the initial development of Churchill Downs real money sports and iGaming businesses.
A graduate of Leeds Metropolitan University, Williams has 17 years of experience as a C-level executive in the United States, with stops in Canada and the United Kingdom. He also founded Thistle Gaming, a company distributing real-time sports data feeds and virtual racing to the leading bookmakers in Europe and Asia.
