Wynn Resorts has entered into an agreement with Austerlitz Acquisition Corporation I that will make Wynn Interactive an independent public company. Wynn Interactive is sports betting and iGaming subsidiary of the Nevada-based hotel and casino company.
The agreement announced Monday will see the combined company’s name- Wynn Interactive, Ltd- unchanged upon closing of the proposed transaction. The company will relist its shares on the Nasdaq under the new symbol WBET.
In a statement, Wynn Resorts CEO and Chairman of Wynn Interactive Matt Maddox said he believe that the transaction would unlock the tremendous potential of Wynn Interactive to further increase growth and allow the business to capture the huge opportunity in North America.
What Does the Merger Provide Wynn Interactive?
The business combination will give Wynn Interactive additional capital and expertise required to grow and succeed as a standalone company. The merger with Austerlitz coincided with an immediate injection of $640 million into Wynn Interactive. The money is expected to sponsor a branding and marketing campaign aimed at accelerating growth.
The combined value of the merged companies is nearly $3.2 billion at closing, according to the news release. The approximate value represents 4.5x Wynn Interactive’s estimated 2023 revenue.
Wynn Resorts will maintain 58% of the company, while the rest belongs to Austerlitz, a special purpose acquisition company (SPAC) owned by billionaire investor Bill Foley.
Wynn Interactive Set to Grab New Opportunities
WynnBET is currently live in six states- New Jersey, Colorado, Indiana, Virginia, Tennessee, and Michigan. In addition, Wynn Interactive has market access to nine more states, and the number is expected to grow soon.
During the company’s 2020 fourth-quarter earnings call, Maddox said WynnBET growth will increase through 2021 into the NFL season.
As an independent public company, Wynn Interactive is well-positioned to grow in the ever-expanding online sports betting and online casino market in North America. The continental growth can see a $45 billion worth of sports betting and iGaming market by 2030.
By 2023, Wynn Interactive projects net revenue of $708 million.
While putting faith in the transaction as a means to further growth, Maddox said Bill Foley is the ideal partner to ensure continued success. Maddox praised Foley’s business strategies, saying his track record with business combination and extensive experience and partnering to maximize value in businesses would be invaluable for the merged company.
Wynn Interactive Seeking a Leadership Position
Wynn Interactive provides casino and sports betting mobile options to bettors across the US and UK via its WynnBET, BetBull, and WynnSLOTS brands. The company currently has market access to as many as 15 states covering roughly 51% of the US population, and plans to expand its reach to nearly 77% of the US population, the news release said.
William P. Foley, II, Founder of Austerlitz I, said that he’s thrilled to be a partner and a future owner of Wynn Interactive. He said his company’s investment in the Wynn brand fits the criteria for the kind of company and management team which the SPAC company likes to co-invest.
“I’m optimistic about the future of US sports betting and online casino gaming, and am confident in the capability of Matt and Wynn Interactive team to execute the business plan.”
He also hoped to exceed their financial projections against what he said would be a massive addressable market.