ZNGA. 12/6/12

Zynga Inc (ZNGA) Takes First Step Towards Online Gambling In Nevada

http://www.valuewalk.com/2012/12/zynga-inc-zn...in-nevada/

Zynga Inc (NASDAQ:ZNGA) has taken authorized steps towards real money gambling games in the US. Zynga, one of the most popular gaming sites worldwide filed preparatory paper work with the Nevada gaming control board, according to the  Wall Street Journal . Now it would be the Board’s decision on whether Zynga is given a gaming license in the State.

The gaming company’s Chief Revenue officer, Barry Cottle, told reporters, “Zynga has filed its Application for a Preliminary Finding of Suitability from the Nevada Gaming Control Board. This filing continues our strategic effort to enter regulated RMG markets in a prudent way. We anticipate that the process will take approximately 12 to 18 months to complete.  As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon, based on legislative developments, but we are preparing for a regulated market. We’ve also recently partnered with bwin.party to bring the highest quality real money gaming experiences to our UK players in the first half of 2013.”

The move from the social gaming giant does not come as a surprise, as the company revealed its intentions of getting into the world of Real money earlier. In the month of October, it even inked a deal with the U.K. based Poker company Bwin.party digital entertainment to offer online poker and casino games for cash in the U.K. The deal looks forward to bringing 180 games, including poker, slots, roulette, and blackjack  in the first half of 2013.

“Bringing together Zynga Inc (NASDAQ:ZNGA)’s expertise in social gaming with the top international real money gaming operator is the best way to create the highest quality gaming experiences for our players in the UK,” Zynga’s executive vice president of Corporate and Business Development, Barry Cottle, said in a statement announcing the deal.

As of now, Zynga Inc (NASDAQ:ZNGA) is struggling to find new sources of revenue. The stock shares of the company declined straight to a new all time low in the past few months. In the third Quarter , Zynga lost $52.7 million. The company laid off around 150 employees and ended several of its games.

The process is expected to take 12 to 18 months. It’s unclear how long after an affirmative decision that Zynga Inc (NASDAQ:ZNGA) would be able to get a gaming license there. Also, there are several other U.S. regulatory obstacles that could derail the process. The company said that it plans to launch its effort in real money gambling in the first half of 2013.