Kendall James

Wynn Resorts expressed an interest in offering online poker over two years ago. The Las Vegas based casino forged a partnership with social gaming site Zynga with intentions to launch a site when intrastate gambling was legalized in Nevada. The two companies applied for an online gambling license about a year ago. However, Zynga has recently announced that it is no longer interested in real money gambling in the United States. Don Mattrick, Wynn’s newly appointed CEO, suggested that the company may abandon its plans to offer online gambling in Nevada.

Wynn may have originally intended to offer online gambling to help offset some disappointing earnings reports. The company’s most recent earnings reports show that Wynn may no longer need online gambling to maintain profitability. The second quarter report showed that net income increased by 10%, which increased earnings per share by $1.50.

Steve Wynn, the billionaire founder of Wynn Resorts, is believed to be satisfied about the company’s future earnings. Other executives share his optimism and feel that the online gambling market is looking less appealing.

Mattrick said that he doesn’t believe online gambling will be a worthwhile investment for Wynn. He became increasingly pessimistic about a partnership with Zynga after seeing the company’s profits decline significantly over the past two years. Wynn could have pursued a partnership with another firm, but many executives felt the current landscape suggested that wasn’t a viable option.

Most online gambling bills state that companies can only apply for licenses if they already have a physical presence in that state. Wynn only has a presence in Nevada, which would prohibit it from participating in an online gambling market in New Jersey or most other states. The company could launch online gambling and hope more favorable legislation would be passed in the future, but executives feel the risk may not be worthwhile. The company is expected to invest more heavily in its traditional gambling business for the foreseeable future.

Kendall James
Kendall James - Kendall has been covering the gaming industry for over 7 years. Kendall lives in San Francisco with his wife and black Labrador. Kendall often travels to Sacramento and Nevada to covers legislative hearings and iGaming conferences.