Zynga's social poker game.
Zynga is officially ending its pursuit of a real-money-gaming license in the United States.
In a report of its second-quarter financial results today, the social-gaming giant revealed that it will not try to operate real-money gambling and casino games online in the U.S. The publisher is currently operating a few online-casino games in the United Kingdom in partnership with online-gaming conglomerate Bwin.party.
“Zynga believes its biggest opportunity is to focus on free to play social games,” reads the Zynga earnings report. “While the company continues to evaluate its real money gaming products in the United Kingdom test, Zynga is making the focused choice not to pursue a license for real-money gaming in the United States. Zynga will continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings.”
Currently in the U.S., online-gambling is only legal in New Jersey. Companies looking to operate online-gambling websites must partner with one of the existing Atlantic City casino operators. Zynga never made any partnerships with those companies.
“New Jersey will likely be the largest real-money-gaming market opportunity in the U.S. over the next two to three years and one that Zynga cannot afford to miss out on, in our opinion," Eilers Research analyst Adam Krejcik wrote in a note to investors earlier this month.
Zynga’s stock is down 13 percent in after-hours trading following its latest earnings report.
Filed under: Games
Jeffrey Grubb 26 Jul, 2013
enclosure: http://venturebeat.files.wordpress.com/2012/09/zynga-poker1.jpg?w=160
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Source: http://venturebeat.com/2013/07/25/zynga-will-not-pursue-a-license-for-real-money-gaming-in-the-u-s/
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