PokerStars and Wynn New Partnership

In a bold move that some might call an act of defiance of US federal law, renowned real estate developer, casino resort owner and billionaire Steve Wynn, attached himself and his casinos to online poker operator PokerStars.

PokerStars is a big player in the US online poker market in spite of US federal legislation in the form of the Unlawful Internet Gambling Enforcement Act (UIGEA) that forbids online gambling operators from handling their business within US territory and bans US financial institutions from accepting financial transactions from such operators.

Recently individual US states started considering intrastate legislation to license, regulate and tax online poker operators in a move that has been welcomed by many and is endorsed by many politicians who wish to find a way of keeping US money from pouring out to foreign operators.

Wynn Resorts Ltd. Is hoping that the new strategic relationship it formed with PokerStars would be part of their efforts to legalize online poker within the US. They also plan to lobby for nationwide legislative change that will enable such legalization and not settle for the current state-led reforms that some states are planning.

Wynn Resorts Ltd. and Isle of Man-based Poker Stars plan to later on, once the necessary legislative reforms have been achieved, to create as part of a joint venture a new poker site called PokerStarsWynn.com.

Wynn Resorts Ltd. is playing it safe by not suggesting it plans of doing any business with Poker Stars prior to the necessary amendments to legislation are reached in order to avoid being considered in a breach of any federal laws.

This move marks a u-turn in Steve Wynn's position regarding internet gambling, which he used to categorically oppose. However as more of Nevada's casino giants are feeling out the online market in anticipation of the law changing, Steve Wynn is the first to announce an actual partnership with a company that is considered to be violating US federal law.

The best explanation for the move came from Steve Wynn himself who stated that "After much study, we are convinced that the lack of regulation of Internet gaming within the U.S. must change. We must recognize that this activity is occurring and that law enforcement does not have the tools to stop it".