Hello. This is Matt Maddox, CEO of Wynn Resorts. Thank you for joining us today. Before we get into our investor presentation, I just want to let everyone know how excited we are to announce the merger of Wynn Interactive with Australis Acquisition Corp. Knowing the tremendous growth opportunity that's ahead and after thoughtfully considering all of the avenues to Fund the growth and development of Wynn Interactive, I wanted to express how easy it was for us to make the decision to create a pure play publicly listed company in partnership with Bill Foley.
The chance to partner with someone of Bill Foley's caliber to help us execute on our strategic vision for Wynn Interactive is a tremendous and rare opportunity that we could not be more excited about. We are going to be a major player in the online sports betting and iGaming market and I look forward to seeing how large this company will become. So, as we get into the presentation, there are going to be 3 others with me. Craig Billings, who is the President of Wynn Interactive. Craig has been with me at Wynn Resorts for over 4 years.
I originally brought him into Wynn Resorts as a digital expert. He served as President of Wynn Resorts and as Chief Financial Officer of Wynn Resorts. He is an extremely talented and one of the sharpest minds in the interactive industry. He started and ran Aristocrat's digital business growing it to over $3,000,000,000 You will also hear from Sudhak Cohen. Sudhak is the Chief Product Officer for Wynn Interactive and is also the co founder of Betbol, the company that we partnered with initially in 2018 and acquired with formation of Wynn Interactive in October of 2020.
Sudoku is known as being one of the leading innovators in online gaming in Europe and as the Head of Product Innovation for BWN. The things that he's been able to accomplish in the interactive space are truly extraordinary. The human capital that we've assembled on our side is what makes me very confident that we have the winning formula. And of course, you're going to hear from Bill Foley, the Founder of Osterlitz Acquisition Corp. And our new partner.
This slide gives us a glimpse of why we're so excited to partner with Osterlitz Acquisition Corp. Bill has created over $100,000,000,000 of shareholder value in his career, dollars 100,000,000,000 And when you look at his portfolio now, owner of a professional sports team, the Vegas Golden Knights, and his multitude of successful investments in hospitality and technology industries as well as a highly successful recently announced de SPAC of PaySafe, a payments company that is now entering into the digital gaming space. It is clear he has extensive relevant industry expertise to contribute to the growth and development of Wynn Interactive. With his expertise and financial acumen, combined with our company's Experienced and talented management team, we are very, very excited for the future. With that, I'd like to turn it over to Bill to introduce the transaction.
Well, thank you, Matt. We're thrilled to be partnering with Matt and the entire Wynn team. We're so excited about this partnership because Wynn Interactive is consistent With a lot of the characteristics of our previous investments, Paysafe included, we have a large market with attractive secular tailwinds in front of us. We believe our overall background and track record are the perfect fit to help build and grow Wynn Interactive's story. Through my involvement with the NHL And our investment in Paysafes, a leading payments company that's also involved in online gaming and the online gaming vertical, we've developed a deep standing at the online sports betting and gaming markets and are excited by the long runway for continued growth in the space.
Wynn Interactive with its globally recognized brand, its differentiated product and its talented management team Are perfectly positioned to capitalize on this opportunity. I'm also excited to be partnering with a company that's such an important part of the broader Las Vegas Through my ownership of the Vegas Golden Knights, I've developed strong ties to Las Vegas and I'm thrilled to partner with such an iconic Vegas Brand with the distinguished executive team led by Matt. My confidence in this investment is very clear and is underscored by our agreement to fully backstop the entire transaction to ensure a smooth closing process. Turning to the transaction overview On this slide, briefly Wynn Interactive has agreed to merge with Australis Acquisition Corp. 1 At a pro form a enterprise value of $3,200,000,000 As you may know, Australis is a publicly traded SPAC with $690,000,000 of cash in trust.
The transaction represents what we believe to be an attractive multiple Of approximately 4.5x of 2023's estimated revenue, a discount to its peers, which we will talk More about later on. The existing shareholders, including Wynn Resorts, will be rolling 100% of their equity And Wynn Resorts will remain the majority owner with a 58% pro form a economic interest in the company. Importantly, Cannae Holdings Inc. Has agreed to fully backstop the share redemptions, if any, ensuring the availability of cash proceeds at closing. With that, I'll turn it back over to Matt.
Thank you, Bill. Clearly, Bill's track record is unparalleled. But at Wynn, we've also been able to deliver real shareholder value. Since we've gone public Back in 2002, and I've been here the entire time, we've outpaced the S and P 500 by more than 4x Since 2002. And we've done that by focusing on our business.
We focus and we sweat the details. We are a luxury integrated resort company that provides superior customer service. Day in and day out, we anticipate what the customer wants and where the market is going. And those values are the values that we will be applying and are applying on the interactive space. Just to remind everybody, Wynn Resorts currently consists of Market leading luxury properties around the world, whether it's in Las Vegas, our 4,700 room campus, it's Over 10,000,000 square feet Wynn and Encore Las Vegas.
We have more Forbes 5 Stars at Wynn and Encore Las Vegas than any other property in North America. We also lead on the fun and excitement and entertainment side, and that translates into the highest grossing integrated resort in all of North America. We do that I catering to everybody, but in particular, we have strong high end clientele that are Wynn enthusiasts from the day they step onto the property and for Moving to Boston, we opened Encore Boston Harbor, a $2,600,000,000 resort in 20 19, right in the heart of the Boston Metroplex. And it's the only one, the only luxury resort casino, in fact, only casino in the Greater Boston area, which is a real advantage as legalization of online sports betting continues to roll out for Wynn Interactive in Massachusetts. That property is hitting on all cylinders now and we are very excited about the future of Encore Boston Harbor.
And in Macau, we have 2 properties that have 2,700 rooms and are the industry leading When it comes to luxury, service and financial performance. So our company is very strong. We have $4,000,000,000 on our And we continue to lead in the luxury integrated resort segment. And the values that I talked about, investing in premium product, high quality product, it attracts the high quality customer and you give that personalized experience It's unforgettable. That's what creates long term relationships.
That's what creates in the online space LTV. In taking those values and applying it to Wynn Interactive, we know that we're going to be successful. We scoured the earth back in 2018 In 2017, looking for a company that met those values, that thought about product and thought about service first, knowing that this industry is In the very early stages and that it is going to evolve and it is going to adapt. And we found that company in Betbol that we ended up acquiring. And so as we think about how we're going to translate those values online, we're Already seeing some of those things work.
As an example, if you're a Wynn Beck customer and you're in New Jersey, we can offer to pick you up on our G650, Fly you to Las Vegas, put you in a villa, go to our Super Bowl party and then go see Drake in the nightclub later that night. Those are rewards. Those are the types of experiences that our customers are going to be able to receive, and we're already seeing those benefits today just as we roll those out. So we are very excited with the ability to take what we have in Massachusetts and what we have in Las Vegas and integrate that completely into our Wynn Interactive portfolio. With that, I'm going to turn it over to Craig to get into Wynn Interactive.
Thanks, Matt. Wynn Interactive Limited is Wynn's digital gaming business. It was founded with the acquisition of Betbol to address what will ultimately be a $45,000,000,000 total addressable market. Wynn Interactive Limited's focus is on leveraging unique our unique product positioning, marquee brand and robust loyalty database to create a business that can deliver over $700,000,000 of revenue by 2023. Here we'd like to highlight the 3 businesses That comprise Wynn Interactive.
Wynn Bet, our flagship product is our U. S. Sports betting and iGaming application. It's live in 6 states and we have market access in 15. We anticipate that WynnBET will deliver over $600,000,000 of revenue in 2023.
Betbol is our U. K. Products, a product that is scaled into a very competitive market on the back of unique features And unique market position. We anticipate that we'll deliver $85,000,000 in revenue in 2023. Wynn Slots, our free to play social casino application provides a very unique cross sell opportunity for us at incredibly attractive CPAs.
When we at Wynn decided to enter the segment, as Matt said, we scoured the earth for a partner who is as product obsessed as we are, And we found that partner in Betbol. With a common goal of product excellence, we brought together Betbol's experience and ours to create WynnBet. Leveraging VetBowl's unique product features will allow us to generate meaningful retention and lifetime value premiums in the competitive U. S. Online sports betting and iGaming market.
I'm now going to turn it over to Sudhak to tell you more about the features on this slide.
Thank you, Craig. As Matt noted, core to Wynn's company DNA is a relentless focus on product and user experience. Our interactive strategy is no different. When we started Betbol, we saw an opportunity to differentiate into competitive maturing UK markets By transforming mobile betting and gaming, which was a solo activity targeted at charts into an interactive social experience with broader appeal. When you open the BetBool app, it looks and feels completely different than the competitive set.
Our product encourages parlay bets And there is a community leaderboard that drives social interactions, allowing users to follow best from others. This drives increased user engagement and time in app. There are also unique gamification features such as the spin the wheel bonus That allow users to earn social currency to boost odds in their bets. WynnBET is adapting these features for the U. S.
Market, which we expect will similarly enhance our existing products. We will share a short video so that you can better experience our unique products.
Thank you, Sudhak. Slide 18 outlines the key investment highlights for Wynn Interactive. We will take you through these in detail on the following slides. But in short, we believe we are poised for strong long term growth in our Interactive business. We expect this growth to be driven by the combination of a $45,000,000,000 total addressable market, our unique product led strategy and user experience, The powerful Wynn brand in our large and established Wynn Rewards affinity program and database and our market leading resorts in Las Vegas and Boston to delight our players with a powerful omnichannel experience.
The foundational elements of market access are in place. We are ready to leapfrog with a potential game changing online and retail wedding opportunity in Boston, product enhancements rolling out every week and a major branding push heading into NFL 2021. Wynn Interactive is set to capitalize on the large total addressable market for online sports betting and iGaming. While analysts may vary on the specifics, Pretty much everyone agrees that a combination of organic growth in existing markets plus new market openings will drive Approximately 30% compound annual growth in interactive gross gaming revenue from $3,000,000,000 in 2020 To approximately $45,000,000,000 in 2,030. Analysts use several different methodologies to arrive at their forecasts.
But in general, it involves benchmarking online spend as a percentage of GDP or online spend per capita in more mature markets Such as the UK or New Jersey and applying it to the U. S. States expected to legalize. While the estimated 30% annual growth in total addressable market is impressive, analysts have actually been consistently underestimating the market's potential. This has been most clearly evident in Michigan.
The state opened to online sports betting and iGaming in late January 2021 And gross gaming revenue in the state is already run rating approximately 83% above the analyst estimated total addressable market. Aside from the sheer size of the market, we believe there have been several key learnings from the early days in Michigan. First, our product has resonated with the Michigan consumer, delivering a 4% market share in March, including a 5% market share in Igaming. Our success has primarily been driven by the strength of our brands as we have yet to launch our broad based marketing push or really leverage our database. Also launching on day 1 helped put us on even footing with the competition.
2nd, premium land based players have Formed the digital peer plays, highlighting the importance of having a physical presence, particularly in Las Vegas. Finally, in a time of huge state budget deficits, the tax revenue generated by interactive gaming takes on added importance. We suspect other states are watching closely and will increasingly turn to interactive gaming as a path to help close these increasing deficits. I will now turn it back to Sudhak to discuss the products in more detail. Thank you, Craig.
When Wynn approached us to discuss We quickly realized that 2 companies shared a common product and customer centric approach that was a natural fit. Batbull's technology drives parlay bets through unique gamification and social features along with an intuitive user interface. This is a product that appeals to novices and sharps alike. WynnBET is adopting the best of these features for the U. S.
Market, which along with the integration of Wynn Rewards will provide a differentiated experience for users. We were pleased to see our product strengths Being recognized by the industry with Eilers and Krejcik naming it the top scoring new app in their March 2021 performance test. On Slide 22, you can see on the chart that the end result of Betbol's product strategy is that the great user experience drives superior unit economics. Our users are highly engaged with our products and value the social features, highlighted by parlay bets, which comprise 85% of our bets and 85% of our GGR. This is important Because parlay bets have approximately 4 times higher hold rates than single bets.
Despite the higher hold rates, Which means we are retaining a higher percentage of their bets. The social and gamification features drive unforgettable experiences And leads to 3 times higher user retention and significantly higher LTVs for users that make a social bet. Back to you, Craig. Thank you, Sidoti.
In states where it's legal, We also deliver a premium icasino experience through WynnBet. Icasino, which we expect to follow sports betting in several states, It's 24 hours a day, 7 days a week and the core customer experience is in Wynn's DNA. Our deep content selection and our VIP team within WynnBET are already delighting casino players in Michigan and New Jersey and we are excited about the potential expansion of Icasino in other states. Similar to the experience of our primary land based Competitor, we expect the ability to connect our marquee physical assets to WynnBET to drive a sustainable advantage over time. From physical activations and experiences to our upcoming integration of the Wynn Rewards loyalty program into WynnBET, Wynn Las Vegas and Encore Boston Harbor will drive both acquisition and retention for our business.
We're also excited to announce that as part of this transaction Wynn Interactive Limited will be the exclusive manager Of the Wynn Las Vegas race and sportsbook and is legalized the Encore Boston Harbor sportsbook. Wynn Las Vegas continues to be the Strip's leading sports destination. Those of you that know us will recall that we talk a lot about the Wynn fair share premium, which essentially means We generate significantly more revenue or EBITDA from a gaming position than our peers. This holds true in sports betting as well. At Wynn Las Vegas, we generated 13% of total Las Vegas Strip sports betting handle, while only having 3% of the hotel rooms.
We punched well above our weight. With the addition of a live Blue Wire podcast studio that will produce original sports themed content, we expect our lead here to only increase. The studio is currently under construction as expected to be up and running ahead of the NFL 2021 season. Encore Boston Harbor provides significant home court advantage in Massachusetts, which if legalized is poised to be a large retail and online Sports betting market. We are preparing to be day 1 ready in the event that legislation is passed And we expect Encore Boston Harbor to be the premier sports destination on the East Coast for sports betters and sports fans in general.
We are excited by the prospect of combining retail sports and online wagering capabilities with Encore Boston Harbor's market leading amenities and our Wynn Rewards loyalty program, a powerful combination. On this slide, we quantify what we believe could be a significant opportunity for us in Massachusetts if legalized. Analysts estimate that Massachusetts will be an Approximate $850,000,000 sports betting market with strong online and retail participation. As you know, Boston is a sports crazy town. In fact, Forbes rates Boston as the number one sports market in the U.
S. Additionally, Massachusetts adults enjoy spending their discretionary dollars on gaming, spending approximately 4 times more per capita on lottery than the national average. As noted on the prior slide, WynnBET along with Encore Boston Harbor are well positioned to benefit from this potentially large market. A 20% to 30% share of this market implies 170,000,000 To $256,000,000 of gross gaming revenue over time. As part of our scaling plan, we have a detailed roadmap in the run up to NFL 2021 that involves continued product enhancements and a broad marketing campaign.
On the product side, we have developed a series of product sprints to achieve competitive parity for WynnBET By NFL 2021 with new feature releases occurring every few weeks, including the launch of web apps In other states during 2Q as a significant portion of trial activity occurs on a web browser. Lastly, we are in the process of fully integrating our Wynn Rewards loyalty program with our Wynn Bet app in order to provide access to Wynn's 13,000,000 1st and high value database. On the marketing side, we continue to build out the customer acquisition funnel. We plan to launch a large scale marketing campaign with name brand talent in order to strengthen the association between Wynn Bet and Sports. We also continue to advance our partnership strategy with both super affiliates and sponsorships.
These include Blue Wire Podcast, MinuteMedia and NASCAR to name a few and we have other exciting partnerships in the works as well. You can see on the map that we have secured varying degrees of market access in 15 states comprising roughly 51% of the addressable market. We also have line of sight to gain access to 9 additional states, representing an additional 26% of what analysts estimate to be an eventual $45,000,000,000 Total addressable market for online sports and casino wagering in North America. By the end of 2022, it's estimated that approximately 55% The U. S.
Adult population will have access to sports betting. We expect to continue to advance our positioning over the coming quarters. Digital gaming is a marketing intensive business with the expenditure front end loaded in the customer lifecycle. We have a robust multi channel marketing strategy in place to engage the entire customer acquisition funnel. To date, our customer acquisition has largely been focused on performance marketing through SEM and social media channels.
Despite our deliberately narrow focus, we have delivered encouraging results, particularly in Michigan. In the lead up to NFL 2021, we will broaden our efforts By leveraging our existing super affiliate and media partnerships, our sponsorships with sports teams And the Wynn database. I will highlight a few key ones. Blue Wire Podcast is a publisher and creator of original sports team content with 140 podcasts and millions of downloads. This arrangement involves the construction of a podcast studio at Wynn Las Vegas And the joint creation of a bespoke WynnBet podcast in late 2021.
The partnership also includes exclusivity in the category for promotion across Blue Wire's Existing podcast portfolio. MinuteMedia is the owner of a large B2B video content network as well as Several owned and operated sports theme websites. WynnBet is MinuteMedia's exclusive sports betting partner across their owned portfolio. We also have sponsorship deals in place with the Memphis Grizzlies, the Detroit Pistons and NASCAR with additional partnerships in the work To grow our presence in key markets. We are growing our partnerships every quarter and expect to hear more as we move through 2021.
On the next slide, we're also planning a large scale marketing campaign to coincide with the start of the NFL 2021 season with A List talent that are household names. The goal of the campaign will be to increase WynnBET's awareness and strengthen the association between WynnBET And sports. We're very excited about the campaign. I'm now going to turn it over to Matt to talk a bit more About the directors and officers of Wynn Interactive.
Thanks, Craig. Human capital is really what is going to drive the value in our business. We have the brand, we have the resources, we have money. But do we have the people? The answer to that is yes.
Craig, who joined our company 4 years ago before coming here, started and scaled a digital business To over $3,000,000,000 in value, Sudhak and Norbert are really luminaries in the online gaming space. They essentially founded online gaming and sports betting in Europe as the co founders of BWN and the Chief Product Officer and Head of Innovation for BWN And then starting Beth Bull, what we did and what I've done is go out and find the people that have done it, The people that have scaled and the people that know what the customer expects in the future, We're not looking to just copy what's going on now. We want to leapfrog. And I believe we have a management team in place With 300 employees today, growing every single day to do just that. So with that, I'd like to turn it back over to Craig.
Thanks, Matt. We'll now talk through some financial highlights of the business. As we noted earlier, this is a really exciting time for Wynn Interactive as we move from establishing our foundational elements To scaling in the run up to the NFL 2021 season. After launching in New Jersey just 9 months ago, we are now currently live in 6 states Following recent successful launches in Michigan, Virginia, Indiana and Tennessee, our busy launch schedule combined with continued growth in our existing markets Has consistently driven annualized run rate gross gaming revenue despite limited investment in a number of marketing channels. In fact, we are pleased to reach the $100,000,000 annualized gross gaming revenue milestone in March On the back of strong sequential growth across our key businesses.
We are really excited to partner with Bill Foley and team at this pivotal time for Wynn Interactive. Bill's proven ability to grow consumer brands combined with capital that AustroLift brings to the table will only accelerate the growth of our business over the coming quarters. We believe our projections are highly achievable. We forecast $96,000,000 of net gaming revenue in 2021, Increasing to $708,000,000 in 2023, which reflects 171 percent CAGR. Our near term forecasts are supported by our encouraging early performance to date throughout the business.
As we discussed, we were run rating over $100,000,000 of gross gaming revenue as of March. Looking ahead to 20222023, we expect a combination of organic growth in existing states plus new state launches to drive growth. It's also important to note that as Betbol has proven in the UK, our focus on parlays leads to materially higher online sports betting hold over time. This means we need less betting volume to generate the same amount of gross gaming revenue as our peers. To put some additional context around these numbers, By 2023, we forecast being live in states representing 40% and 15% of the U.
S. Adult population For online sports betting and iGaming respectively. Our forecast implies that we achieved 5% to 7% Market share of the total analyst estimated TAM in 2023, which we believe to be achievable. Our confidence is supported by our success in Michigan, where as noted earlier, we have already achieved a 4% market share in March. This is ahead of the large scale marketing campaign and product enhancements we are launching in the run up to NFL 2021, which we expect will grow our reach And drive market share gains.
This transaction only increases our confidence in our growth trajectory by strengthening our balance sheet to quickly scale the business. Turning to the next slide, we outlined the long term financial potential for the business, which we believe can generate $1,000,000,000 plus of EBITDA over time. I'll briefly take you through the key assumptions that get us there. We believe there is a long runway for growth in digital gaming with analysts expecting 30% Annual growth in the total addressable market reaching $45,000,000,000 by 2,030. Although we are conservatively assuming 5% to 7% share by 20 Our long term view is that we will be a solid double digit market share player in both online sports betting and iGaming.
Our belief is underpinned by our unique product positioning, our leading brand and gaming and the omni channel integration with our premier destination resorts in Las Vegas Next, we believe long term steady state EBITDA margins of 25% to 30% are achievable. Our margin assumptions are supported by several key factors. 1st, our differentiated product enhances profitability through higher retention and lifetime value. 2nd, integration with the 13,000,000 person Wynn Rewards database and Wynn's omnichannel presence in Las Vegas, Boston Should drive efficient marketing and CPAs as we scale. 3rd, as noted by several peers, As early acquired cohorts mature, their contribution margin outpaces acquisition costs, driving material operating leverage.
We're extremely excited about the future of Wynn Interactive and believe it's a unique investment opportunity at an attractive valuation. It's rare to find markets that have 30 plus percent expected 10 year growth figures and we see ourselves as a significant player that is well positioned to grow above the market Over that time period, our revenue growth, market share expectations and in place market access line up favorably Compared to what we refer to on the slide as premium branded peers, DraftKings and BetMGM. As a premium branded player with all of the distinctive competitive advantages Particularly in the context of the long term $1,000,000,000 plus EBITDA potential of the business we just outlined. With the 2023 revenue multiple of 4.5 times, we will trade at a material discount to the average multiple of our core B2C online gaming peer set and high growth consumer Internet peer groups. This is particularly compelling in the context of our 171% revenue CAGR through 2020 As we continue to expand our presence across the North American online gaming market.
In fact, our growth adjusted multiple Of 0.03x is the lowest of all the peers in our comp set, further highlighting Wynn Interactive's attractive valuation. As discussed at the beginning of the presentation, both Bill and Wynn Resorts have an extensive track record of generating above Market equity returns and can say confidently that the long term potential of this business under our shared leadership is quite rare. We look forward to the exciting opportunity ahead. I'll now turn it back to Matt to close.
Thanks, Greg. Clearly an exciting time in our business and a very exciting time for Wynn. Partnering with Bill Foley And what we have at Wynn Interactive, I believe is a proven recipe for success. Our differentiated product led strategy, our brand, our market leading resorts in Las Vegas and Boston are really assets that other companies Cannot replicate. We look forward to this exciting opportunity ahead and executing on our plan for growing Wynn Interactive into a clear leader in the emerging online gaming industry.
Thank you for all your time and your interest in our company.