Wynn & PokerStars Partnership Generates Many Questions

The announcement last week regarding the deal between Wynn Resorts and PokerStars has caused much buzz in the gambling industry and many industry leaders pondered the implications of this partnership for both companies in the near future.

The deal raises many questions regarding the future of PokerStars as the number one offshore online poker provider for US players and the business strategy that lead Wynn Resorts to undertake such a partnership at this stage.

Why the u-turn?
What propelled Steve Wynn to change his previously held opinion regarding banning online gambling within the US as it could not be regulated?

Wynn was also a strong support of Sen. Harry Reid who proposed legislation that will freeze the activities of PokerStars and other gaming companies who currently violate US federal law until they obtain proper licensing. Will Wynn now withdraw his support of the Senator?

Why now?
There is little chance for federal legislation to be changed this year so why did Wynn enter into the partnership now.

Why PokerStars?
If Wynn really wants to push for a nationwide change in legislation why team up with PokerStars who are supporting a Nevada-based intrastate legislative change.

State Law vs. Federal Law?
If the Nevada intrastate online poker bill will get approved but no other changes in legislation will take place on a national-level or within other US states, how will this effect PokerStars that would be bound by regulators to only offer their services within the Nevada and neglect all their other US players.

No industry leader was certain enough to offer their predictions as to how things will pan out as there are currently too many variables that can affect and change the interests of PokerStars and Wynn Resorts. Only time will tell how much of an advantage either company will gain from this deal and whether this deal will stand the test of time in the face of changing legislation.