In an Associated Press article this week, Steve Wynn, the Chief Executive Officer of Wynn Resorts, discussed the recently dissolved deal between his casino conglomeration and PokerStars. The deal, which was signed on March 24 and terminated a week ago, would have seen one of the biggest names in the worldwide brick-and-mortar casino industry team up with the largest online poker site in the world.
In the article from the Associated Press via Yahoo! Finance, Wynn discussed the first quarter fiscal reports for the company, which showed a net income of $173.8 million. Wynn was asked about the company’s stance on online gaming going forward and his reply demonstrated his constantly changing viewpoint on the industry.
“We finally became convinced, sort of hesitantly, about PokerStars, because there didn’t seem to be any interest in the government to enforce restrictions on the game of poker,” Wynn stated in the article.
He continued, “Based upon that, we made a very tentative, conditional deal that said if the United States government makes poker legal and provides that anybody who’s been dealing poker recently is acceptable – and then if that legislation passes in Washington – and then if you can get approved by Nevada or Jersey or whoever’s the licensing authority, then we’ll go into business and split it with you 50-50 and we’ll put our name on it.”
The statements by Wynn, who has become one of the most powerful entrepreneurs in Las Vegas by developing high-end casino properties like the Bellagio and Wynn, are in marked contrast to statements he made following the signing of the partnership with PokerStars.
Back on March 24, Fox Business reported on the Wynn/PokerStars partnership and the executive’s comments were much more positive: “As a company that has safely conducted gaming in the United States for more than forty years, we believe that the same can be done for poker on the internet. It is time that the thousands of jobs created by this business and the potentially significant tax dollars come home to the United States.”
In a CNBC article, Wynn went deeper in his analysis of the United States Government’s stance on online gaming: “After much study, we are convinced that the lack of regulation of internet gaming within the United States must change. We must recognize that this activity is occurring and that law enforcement does not have the tools to stop it.”
The statements made by Wynn following the signing of the PokerStars deal are largely opposite of his stance prior to the arrangement. As recently as 2009, Wynn discussed his anti-online gaming stance with the New York Times. In an article from April 2009, Wynn stated, “The online world would be impossible to regulate… Even though it would be a benefit to our company, we are strongly opposed (to internet gaming).”
It is reportedly around this time, however, that PokerStars looked to thaw Wynn’s chilly opinions on online gaming. In a Forbes article earlier this month, details are offered about meetings between Wynn and indicted PokerStars owner Isai Scheinberg on a yacht in the Mediterranean Sea. These meetings became the foundation for the deal that was brokered on March 24 and later terminated.
Scheinberg is one of six online poker site operators indicted by the U.S. Department of Justice on April 15. Allegations of bank fraud, money laundering, and violations of the Unlawful Internet Gambling Enforcement Act of 2006 were cited as reasons for the indictment by the U.S. Attorney’s Office for the Southern District of New York. Although an arrest warrant has been issued for Scheinberg, he has not been placed in custody as of today.
