Wsj Analysis

575 WordsJan 24, 20123 Pages
Wynn Forms Strategic Ties With a Major Poker Website By: Alexandra Berzon Friday, March 25, 2011 Executive Summary Wynn Resorts is a Casino and Resort that has properties all around the world; it is a multibillion dollar corporation that is currently trading on the NASDAQ. The most recent news coming out of Wynn Resort includes a new ground breaking partnership with online poker site PokerStars.com. Wynn Resorts is looking to enter the internet poker market place through Poker Stars so that it can capture more market share via web. Poker Stars is one of the most well known and fastest growing American internet poker sites and has millions of U.S. –based poker players. PokerStars.com operates in multiple countries in Europe, where internet poker is popular and legal, but in the United States laws have made growth in the United States internet market very difficult to come by. Even though internet poker is an illegal activity in the United States, Wynn Resorts said it would lobby for federal legislation legalizing online poker. This would allow Wynn to create StarsWynn.com and give the company and exponential head start in front of its competitors Las Vegas Sands Corp. and MGM Resorts. Facts about Online Poker • Poker Stars began directly after the internet boom of 2000, it arrived perfectly to take advantage of the new web revolution being led by young individuals looking to take advantage of new opportunities and bargain prices. o Young web developers like those at PokerStars.com were able to gain market share and now they make of a few of the richest companies in the market (ex. Google, Pandora.com, and Facebook.com) • It is estimated that 55 million Americans played poker in 2005 and 15 Million Americans play online poker for money • 78% of Americans do not think it is appropriate for the federal government to restrict what adults do on the

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