(Bloomberg) -- Wynn Resorts Ltd. scuttled a deal announced in May to take its online-betting business public by merging it with a special purpose acquisition company.
The gambling giant plans to spend less on marketing to expand its customer base, so the operation won't need as much capital, it said in a statement Friday.
“We expect the capital intensity of the business to decline meaningfully beginning in the first quarter of 2022,” Craig Billings, chief executive officer of Wynn Interactive, said in the statement.
The planned merger with Austerlitz Acquisition Corp. I, created by title-insurance magnate William P. Foley II, would have generated about $640 million for Wynn Interactive and valued the unit at $3.2 billion.
Wynn Resorts fell less than 1% to $93.63 at 9:48 a.m. in New York. The shares had declined 16% this year through Thursday.
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