Wynn Resorts has announced a strategic move so that it can grab a bigger share of the casino poker player market if the US passes federal legislation to regulate Internet gambling.
The business model for online poker typically involves feeding Internet players through to live casino tournaments via qualifying online competitions. But since the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) in the US in 2006, US casinos on US soil have been unable to tap in to this form of marketing to reach domestic poker players.
Wynn’s new strategic link with PokerStars is dependent on the passage of a new federal law to affirm the legality and taxation status of online gaming in the US and that’s not yet guaranteed. One side effect of a successful passage of such legislation however is that it could help to feed more US players through to casino poker tournaments held in Macau and other Asian jurisdictions. It’s likely other casino operators with US and Asian businesses will announce similar strategic deals with online poker companies in anticipation of enabling legislation for Internet gambling within the US.
PRESS RELEASE
LAS VEGAS, Mar 24, 2011 (BUSINESS WIRE) — Wynn Resorts, Limited (NASDAQ: WYNN) announced today that it has entered into a strategic relationship with PokerStars, the world’s largest online poker business.
The companies will first work to secure the passage of federal legislation that will finally and conclusively define illegal internet gambling, provide law enforcement with the tools necessary to stop illegal internet gambling, protect consumers by establishing a robust regulatory environment for the safe operation of online poker by experienced operators, and establish a regime for the assessment and collection of taxes.
Upon passage of this legislation and acquisition of the appropriate license, the parties will jointly operate a regulated, US online poker site under PokerStarsWynn.com.
“After much study, we are convinced that the lack of regulation of internet gaming within the US must change. We must recognize that this activity is occurring and that law enforcement does not have the tools to stop it. As a company that has safely conducted gaming in the US for more than 40 years, we believe that the same can be done for poker on the internet,” commented Stephen A. Wynn, Chairman and Chief Executive Officer of Wynn. “Additionally, it is time that the thousands of jobs created by this business and the potentially significant tax dollars come home to the US,” Mr. Wynn continued.
Mark Scheinberg, Chairman and Founder of PokerStars, commented, “We have long supported the enactment of local regulatory regimes that protect consumers and provide valuable tax revenues and jobs. PokerStars is closely regulated in many European countries and it has been endorsing the adoption of the same approach in the United States for years, with this alliance representing a critical step in that direction. We are excited about the opportunities that partnering with Wynn, a pioneering leader and innovator in gaming, will present for PokerStars in the United States. These opportunities include the rapid ramp-up in hiring of a large number of professionals in this growing global technology and services sector that will benefit from US talent to keep up with global demand.”
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