Wynn Resorts (NASDAQ:WYNN) has partnered with 888 Holdings to offer online gambling in the Silver State.  888 is positioning itself to be a huge player in U.S. online gaming. Recent player traffic numbers show that 888 has inched forward to third place in the global market behind PokerStars and the iPoker Network. Wynn on the other hand has also applied for online gambling license in the state of New Jersey and may team up with 888 for the same. The online gambling market offers great opportunities for growth. Several states are considering legalizing online gambling as players flock to offshore sites for gambling. Wynn has a strong brand image that can help it attract more customers for online gambling.
The Partnership With 888 Holdings
888 operates several high profile gambling websites such as 888poker, 888bingo and 888sports. It is also the software provider for the recently launched WSOP (World Series Of Poker) branded site of Caesars Entertainment. The 888 and Avenue Capital Group teamed up to create the “All American Poker Network” and Wynn will be utilizing the same for its future Internet poker offerings in Nevada.  In addition to Nevada and Delaware, New Jersey also has legalized web gambling. Wynn and 888 are expected to be players in that market as well. The average online gaming revenue forecasts for New Jersey alone are estimated to be around $412 million in the first year.  Wynn has also applied for online gambling license in the state of New Jersey. Other states in the U.S. such as California are considering legalizing web poker.
How Big Is The Market?
The global gambling market is worth around $417 billion this year and online gaming accounts for a fraction of it. Online gambling is slowly but steadily growing in the U.S. According to research by H2 Gambling Capital with the exception of lottery and skill-based games, regulated real-money online gambling already generates up to $30 billion in gross wins globally.
If things go according to current expectations, the U.S. is poised to earn gross winnings of over $7.4 billion by 2017, representing around 30% of the global online gaming market with continuous growth expected annually.  Currently there are estimated 1,700 offshore sites, which handle bets worth more than $4 billion a year.  While the Las Vegas casinos are still recovering from the damage caused by the recession, online gambling can offer a new source of revenues for these companies. Clearly, Wynn sees a tremendous growth opportunity in this arena and wants to capitalize on it.Notes:
- Wynn Partners With 888 For Web Poker, Card Player, Sep 23, 2013 [↩] [↩]
- So What Is New Jersey’s Online Gambling Market Really Worth?, Online Poker Report, Apr 23, 2013 [↩]
- Online Gaming Poised to Become $7.4 Billion Industry in the U.S. by 2017, Skift, Sep 17, 2013 [↩]
- As more states legalise internet gambling, it will become safer, The Economist, Sep 14, 2013 [↩]