AUS - Wynn Resorts ends SPAC deal plan for sports betting unit as it resets strategy

Wynn Resorts (WYNN -0.8%) and Austerlitz Acquisition Corporation I (AUS -1.3%) have mutually agreed to terminate the planned combination of Austerlitz I and Wynn Interactive Ltd. through a SPAC deal. CEO Craig Billings says the company is still excited about WynnBet's future with the continued roll out of product features and planned new state launches including New York, However, in light of elevated marketing and promotional spend in the sports betting industry, Wynn is pivoting its user acquisition efforts to a more targeted ROI-focused strategy and expects the capital intensity of the business to decline meaningfully beginning in Q1 of 2022. Wynn Interactive has market access to 15 states covering 51% of the U.S. population, and was targeting to gain access to 77% of U.S. population near-term, but analysts were warning that its lack of huge database of U.S. customers gives it a disadvantage.

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Wynn Resorts ends SPAC deal plan for sports betting unit as it resets strategy