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Zynga's (ZNGA -15.3%) decision not to pursue real-money gambling in the U.S. probably has more...

Zynga's (ZNGA -15.3%) decision not to pursue real-money gambling in the U.S. probably has more to do with a fear of rubbing shoulders with heavyweights such as Wynn Resorts (WYNN -0.4%) and MGM Resorts (MGM +0.2%) with their deep pockets than concerns a major market doesn't exist for online gambling, according to early analysis. The other interesting angle is Zynga could be positioning itself for a strategic partnership with a company that already has the requisite gaming licenses.
Comments (9)
  • James Sands
    , contributor
    Comments (1912) | Send Message
     
    Pincus has never had a successful business, why should we expect a company at Zynga's level of public scrutiny and pressure to succeed to be different?
    26 Jul 2013, 01:08 PM Reply Like
  • LYogi
    , contributor
    Comments (1991) | Send Message
     
    I smell a rat. In a good way.
    26 Jul 2013, 01:09 PM Reply Like
  • ciolan
    , contributor
    Comments (193) | Send Message
     
    http://bit.ly/1bresJB

     

    “Part of the reason Zynga has been successful historically is that they’re able to iterate rapidly. But iterating quickly when you’re regulated is not an easy thing,” the person said, adding that the regulatory regime could apply to something as basic as changing the process for signing up for the game.

     

    For Zynga to compete in the still-emerging gambling space, the source noted, it would have to fundamentally change its corporate structure to jump through “a whole lot of hoops.” As for Zynga’s partnerships with gambling players like BWIN: “It was just Zynga shipping them logo files .. they were BWIN games in Zynga clothes.”
    26 Jul 2013, 01:25 PM Reply Like
  • slcUTAH
    , contributor
    Comments (504) | Send Message
     
    Sounds like the effort to get into the gaming is not worth it. The new CEO may have just saved Zynga from making a big mistake (entering real money gambling) by convincing the board not to get involved. In time we will all know if this is true or not. I think Zynga has something up their sleeve but it's for down the road a little. I'll be watching Zynga.
    26 Jul 2013, 01:59 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (4095) | Send Message
     
    This will be a penny stock once they used (burned) their cash.

     

    Their cost basis is too high for F2P-games and there are tons of new upstarts as well as established game companies entering the space.
    26 Jul 2013, 03:21 PM Reply Like
  • haleiwahu
    , contributor
    Comments (3448) | Send Message
     
    Looks like ZNGA may have started to identify some of those headwinds many of us have been talking about for the last year.
    26 Jul 2013, 04:00 PM Reply Like
  • KJP712
    , contributor
    Comments (437) | Send Message
     
    Eventually even the gamblers will run out of money.
    26 Jul 2013, 10:07 PM Reply Like
  • DIgitalMediaView
    , contributor
    Comments (668) | Send Message
     
    Most commentators looking at this closely knew that ZNGA's real money gambling "moves" were a stock-price pumping farce, given all the realities that govern real-money gambling especially in the context of online gambling legalization dyanmics in the US. Mattrick made the only move he could. Regarding the idea that this is paving the way for an "interesting angle" whereby "Zynga could be positioning itself for a strategic partnership with a company that already has the requisite gaming licenses"...As the Paidcontent article linked to above by ciolan points out: "As for Zynga’s partnerships with gambling players like BWIN: 'It was just Zynga shipping them logo files .. they were BWIN games in Zynga clothes.'” This equates to paltry participation in the online gambling marketplace, not some exciting new upside opportunity.
    27 Jul 2013, 11:21 AM Reply Like
  • rchic1
    , contributor
    Comments (6) | Send Message
     
    The only thing that could have saved this company would be online gambling and learn to compete fiercely. There may be a future for this company, but as to adding this to your portfolio, absolutely not. Check out the 5,000 securities, there must be other possible buys.
    28 Jul 2013, 06:28 AM Reply Like
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