Zynga Preparing for Real Money Gambling in the USA

Although Zynga shares are near bottom levels of the year, investors are anxiously optimistic about the company’s latest foray into the realm of real money gaming. Their first move was in Europe, and the move will serve, not so much as a prop for the company currently, but rather, a preparation for when the real industry opens up in the United States.

Investors are less than enthusiastic about the possible increase in revenue for Zynga after they moved into the UK market. Zynga is not 100% to gain, but rather partners with bWin, who stands the most to gain from the partnership. Zynga has the market cornered on the social network and that is what excites the world.

The possibility of playing poker on an iPad, or on the new Galaxy S IV, against players from across the world, is what truly brings out the optimists on this trade.

The internet poker community has been relatively quiet, rather subdued, over the past several years since the US passed the ill-advised UIGEA, and those who look to profit the most – the publicly traded gambling companies like MGM, Caesars, the sharks (players who feed off the minnows), the affiliates, and investors, are the ones most eagerly waiting for regulations to change.

Zynga has been trading just above $3 and after the news of their move into online gambling they moved sharply to nearly $4 per share. However, momentum has cooled, even after their last earnings call beat expectations and the stock is yet again fighting to stay above $3.