Steve Wynn is $63,800,000 lighter in the wallet this morning, after purchasing one million shares of Wynn Resorts on the open market over 
the last three days. This brings his total stake in the company to slightly more than 11 million shares. “Given this is the first meaningful insider purchase and the first sizeable open market purchase by Mr. Wynn in some time, and given current short interest levels … it should come as little surprise that shares are indicated up ~9% in aftermarket trading,” wrote Deutsche Bank analyst Carlo Santarelli. “Furthermore, in our view, anytime a CEO buys a meaningful stake it sends a favorable message.
“While Mr. Wynn’s purchase will likely be a much needed spark for shares, at least in the short term, we believe it is prudent to be realistic about what the purchase really implies. Simply, we believe it is most likely that Mr. Wynn viewed current valuation levels … as inexpensive and indicative of unearthed value,” Santarelli added.
Wynn’s purchase of WYNN had the desired effect, “making it the top performer Wednesday in the Standard & Poor’s 500 Index,” according to Bloomberg Business, which took the splurge as an indicator that Macao has finally hit bottom and may be on the way back up. With Wynn Resorts reliant upon Macao for 59% of its total revenue and $4.1 billion Wynn Palace on the way, the company certainly has to hope this is true.
* Nevada‘s governor and its attorney general are at odds over Sheldon Adelson‘s attempt to go back to a pre-Obama administration interpretation 
of the Wire Act, i.e., one that bans online gambling. Attorney General Adam Laxalt (R, left) wants the old form of the Wire Act resurrected, which would kill off Nevada’s online-poker industry. Gov. Brian Sandoval (R), upon whose watch Silver State casinos entered cyberspace, says that “in order for Nevada’s businesses to maintain a competitive edge internationally, we must enact policies that allow the industry to meet the demands of a younger, more technologically engaged gamer.”
He adds that he is “very concerned” about Laxalt’s statements. Nevada online-poker revenues, incidentally, are no longer reported by the Nevada Gaming Control Board because there are only two providers in the state.
* Although sports betting is illegal in New Jersey, both Monmouth Park and partner Betfair are poised for action should a federal appeals court reverse the ban. The track says it could add cyber action as soon as March. Meanwhile, online gambling continues to inch forward in Pennsylvania. Legislative tweaks have included higher licensing fees, a patchwork of new taxes and a potential population explosion of OTB slot machines across the Keystone State.
* Unless your name is DraftKings or FanDuel, your daily fantasy sports operation is probably in some degree of retrenchment. Mondogoal, for instance, has withdrawn from seven states and is contemplating a complete U.S. shutdown. Star Fantasy Leagues has pulled its teams from the field in 25 states and Yahoo is hors de combat in Florida, lest it run afoul of a federal grand jury. Perhaps the most circumspect operator is StarDraft, which confines its activities to states in which DFS is explicitly legal, namely Massachusetts, Kansas, Maryland and New Jersey.
Eric Hollreiser, vice president of communications for StarDraft parent Amaya, said the company wasn’t “ceding anything to our competitors. We’re running a marathon and won’t compete in the expensive marketing sprint the others are running.” (And have you noticed how the flood of TV ads has dried up?) DraftKings and FanDuel remain defiant however, contending that bets taken from states where DFS is illegal (Washington, Montana, Louisiana, Iowa and Arizona) were hunky-dory. The wagers, attorneys say, emanated from states where DFS is lawful and it’s simply a matter of punters residing in more than one state or having moved or not knowing how to register with FanDuel and DraftKings correctly. They’d better be able to back that up if a New York judge rules in favor of state Attorney General Eric Schneiderman and against DFS.
Meanwhile, Vic Salerno has become Nevada’s first applicant for a DFS-related gaming license, in keeping with the mandate of the Nevada Gaming Commission. “I believe we have the talent to bring a revolutionary process to the fantasy sports industry,” Salerno said of his newly formed US Fantasy, although it is at present unclear whether any casino companies will sign aboard. So far, none has been willing to play in the DFS end of the pool.
