Real Money Social Gambling Will Boost Zynga
Zynga got a great jump right out of the box in the social gambling space, because it already had a head start with games like Farmville. Zynga Social Poker has been a sensation; easily the most popular gambling-related game available on Facebook, bringing on almost 38 million players. Zynga is reportedly responsible for 12% of Facebook's revenue, so it is a very important in the machine as far as the most powerful social media platform on earth.
However, some interesting things have been going on with Zynga, which is a public company. For one thing, the stock price has been slumping badly. Zynga reported a huge loss for the third quarter of 2012. And high-ranking executives have been abandoning ship. This is not the kind of atmosphere that would seem very encouraging to investors. There are several reasons for the dip in stock price, among them the fact that the market for social gambling is getting closer to maturing, if it hasn't already. This is an important point to make, because it leads us to the next step.
Zynga knows that even if it suffers a bit from being the "top dog" in the social gaming market, targeted by every other company, and even if it have been a victim of its own success in terms of the marketplace for games becoming more and more crowded, they still have a lot of names in the database and lot of juice with Facebook. There is some monetization with a game like Texas Hold'em, because people who play the poker game sometimes have to buy additional chips after losing theirs. And because of the sheer volume of players, they will produce some revenue that way.
But the move into real money gambling, which will take place in 2013, is expected to be something of a bonanza. Initially it will be in the United Kingdom, and can spread to other areas of the world. Furthermore, Zynga is expected to be well-positioned for licensure in the United States if that comes to pass. Zynga's real money gambling portfolio will greatly contribute to a social gambling revenue intake that is projected by some analysts to be worth $1.4 billion in 2014, jumping up to $2.5 billion in 2015, and it is assumed that this transition will drive Zynga's stock price up to a point where it will make its investors happy once again.