Wynn bets on USD 3.2 billion SPAC for Online Gambling
Wynn is spinning off its online gambling attempt as the casino operator seeks to break into more states that are legalizing sports betting and other online offerings.
Wynn Resorts announced Monday that it plans to merge Wynn Interactive with a special purpose acquisition company (SPAC), connected with Bill Foley, a billionaire who helped bring the NHL to Las Vegas.
Foley’s Austerlitz Acquisition, a blank-check company plans to pay $640 million at an enterprise value of $3.2 billion to take Wynn Interactive public, with Foley’s Cannae Holdings Inc. backstopping the share redemptions to ensure the process goes through.
“We are confident that this transaction will unlock the tremendous potential of Wynn Interactive to further accelerate growth and enable the business to capture the massive opportunity in North America,” Wynn Resorts CEO Matt Maddox said.
“Bill Foley is the ideal partner to ensure continued success — his track record with business combinations, extensive experience growing marquee consumer brands and partnering to maximize value in businesses like ours will be invaluable as we continue scaling.”
With sports betting becomes legal in more states, there is a growing competition to offer online gambling in states that make the move. Wynn competes with Caesars Interactive and Penn National Gaming as well as MGM Resorts, DraftKings, Flutter Entertainment and others for the business.
Wynn said that its WynnBET online services was currently available in New Jersey, Colorado, Michigan, Virginia, Indiana and Tennessee.
Current shareholders of Wynn would retain 79% of the equity in the deal announced Monday, while shareholders in Austerlitz would take 18% and the SPAC sponsors would get 3%.
The companies said they expect the agreement to be finalized by the end of 2021, with shares eventually trading on the Nasdaq under the name Wynn Interactive and ticker symbol WBET.
Editing by Rachel Hu