Zynga Enter Online Gambling Market

October 30, 2012

Recently Zynga has fired over 150 people, and there have been rumors of severe cash flow problems within the company. So we are not surprised to hear that Zynga is now pushing forward its plans to enter the pay to play online casino market.

Early last week Zynga weathered a massive drop in its share price, only to see it then bounce back when it announced its deal would Bwin Party. Basically the Bwin Party deal provides Zynga with a vehicle to bring their own take on online gambling to the pay to play casino market. We actually think that Zynga could do something quite special as, I t has a huge amount of experience in social gaming, and we thing many the aspects of several Facebook apps like Farmville, especially those to do with evolving friends in the performance of players, and tracking achievements, could make a fantastic addition to online gambling and online slot games in particular.

But we would also like to point out that the whole online casino market is in a kind of fixed state, players expect games to play in a certain way, they expect certain features, and they expect a certain format to games. The Zynga approach may prove to be just a little bit too complicated for many of the more traditional online gamblers, who enjoy online slots that are basically computerized counterparts of real-world slots. If Zynga begins to develop advanced gameplay features, especially features which enable social gambling, it may ostracize the traditional form of online casino player. However, this could go both ways, Zynga could also capture entirely new emerging market in the form of social slots players, who make the transition to real-world play to play online casino, just follow their favorite Facebook application developer. In effect, Farmville fans would become online slot fans. So we will keep around this, we really think that this could go one of two ways, Zynga will either reap major revenue or found abysmally.

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