Zynga to Enter Market

April 27, 2012

The story of Zynga is a story of success. Positioned well at the early stages of the social gaming boom, Zynga came to market very quickly with one of the massive social gaming titles, FarmVille. Zynga has continued to deploy socially enabled games via Facebook and more recently Google+. Zynga currently operates some of the largest social gaming titles, including the afore mentioned FarmVille, CityVille, Words with Friends and CastleVille. Zynga also operate the most popular social poke application, Zynga Poker, and it is this title which would logically be the vehicle for Zynga’s sideways move into paid online gambling.

Some time back we reported upon the fact that Zynga was starting to look to the online gambling markets as a possible business development route. Well, we have just heard that Zynga are currently in talks with Wynn Resorts, trying to put a deal together which would allow them to move their plans forward.

However, there is a problem, and one which needs to be overcome before Zynga can launch its own online casino, or even partner with an existing regulated gambling company such as Wynn Resorts. Zynga operates globally, and in the USA it appears that only around 20 states will actually allow online gambling in the coming months. This means that the new Zynga product would be excluded from a large portion of its current user base. Zynga also has no online slots, and this is a major problem, although the development of online slots should be pretty simple for Zynga.

Zynga could start out in the UK market, but the real value of Zynga is the millions of users who currently play its free to play social games via Facebook and Google+. Zynga needs to capture a large percentage of these at launch to make a killing, and the exclusion of large parts of the USA would have a massive impact upon this.

We think Zynga will eventually enter the market, and whether that is achieved by tying up a deal with the likes of Wynn Resorts only time will tell.

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