Bloomberg – Wynn Resorts Ltd. (WYNN) plans to run its online gaming business in New Jersey from the property of competitor Caesars Entertainment Corp. (CZR), according to a person with knowledge of the situation.
Wynn, which doesn’t own a casino in the state, will use computers at a Caesars hotel in Atlantic City, said the person, who sought anonymity because the arrangement hasn’t been announced. The person didn’t provide other terms. Both companies are working with 888 Holdings Plc (888), one of Europe’s largest online gambling operators.
The accord gives Wynn a physical presence in a New Jersey casino for its computer hardware — a requirement set by the state to help its struggling casino industry. Local gambling rules can force competitors to cooperate to gain a slice of what researcher H2 Gaming Capital estimates could be a $7.4 billion market in the U.S.
“As the online business rolls out on a state-by-state basis, everyone will need to partner with someone,” Itai Frieberger, chief operating officer of 888 Holdings, said in a telephone interview. “You’ll find very strong partnerships in some cases with competitors in order to get a license.”
Frieberger declined to say where Wynn’s computers would be located.
Michael Weaver, a Wynn spokesman, declined to comment. The arrangement between Caesars and 888 Holdings isn’t exclusive, said Seth Palansky, a spokesman for Caesars, which owns the World Series of Poker brand.
