Social Gaming Giant Poised to Enter the Internet Gambling Scene

“Zynga is committed in providing a gaming experience that our clients will surely want and enjoy,” a spokesperson by Zynga declared in a recent business forum. Zynga Poker operates global online poker and is the leading company when it comes to scope and scale of operations worldwide. It boasts of an extensive customer base of over 7 million online gamers on a daily basis and more than 30 million online games players each month.

“We continually monitor the pulse of our clients and we recognize the pervading trend and interest on the real money segment of the gambling market. We are in constant consultation with major stakeholders that demonstrate synergy in potential joint venture agreements,” the Zynga spokesperson explained.

The International Games Technology has acknowledged the wealth of opportunities for growth through a cross-over measure between online gambling and social network gaming. This was clearly demonstrated in the acquisition in the amount of $500 million of Double Down Interactive, a leading online casino games provider based in Seattle, Washington.

Nonetheless, some business analysts are not too optimistic about a dramatic improvement in the overall business performance of Zynga in the short term. The company still has to hurdle several challenges and meet the requisites for the conversion of online gamers into real payers and translate such cross-over measures into revenue-generating business solutions and contribute to the growth of the company in 2012.

Some industry observers are also concerned with the complicated state of the industry, licensing issues, required technology for a safe monetized platform and international and national standards. Thus, some companies are more inclined to explore opportunities for growth through acquisition or joint venture agreements with online gambling stakeholders.

In a related development, Arvind Bhatia, the entertainment analyst of Sternee Agee, calls the Zynga move as a long shot. “We have to remember that there are no clear indications on how soon the online gambling business will finally be legalized in the United States,” Bhatia explained. “It is also important that we determine if Zynga has comparative advantage in Internet gambling over the other established industry players. Everything is still speculative as far as Zynga’s growth potentials are concerned.”

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