Social gaming developer Zynga has spent the last year making plans to enter the American online gambling market. Investors were excited at the possibility of Zynga breaking into the burgeoning market, but the social gaming operator has recently changed its mind and has abandoned its plans to launch online casino and online poker applications in the United States.
The news is quite shocking, because Zynga has spent the better part of the year preparing for entry into the American gambling market. Zynga Plus Casino and Zynga Plus Poker were groomed for American audiences, but the operator is no longer interested in obtaining a license to operate either site in the country.
“The one thing Zynga had going for it was that it was well positioned to own the real-money gambling (RMG) market in the United States if it became legalized,” says Tim Worstall, a Forbes contributor. Now, the company has decided to focus solely on casual gaming. Zynga initially experienced success by developing social games like Words With Friends, Zynga Poker and Farmville.
Rather than branching out into a new market, Zynga is going back to basics focusing on its bread and butter. While this may be the best course of action for the company, investors are not pleased. They were looking forward to Zynga breaking into the American online gambling market, which would be incredibly lucrative. Instead, it seems as though Zynga has taken a step backwards.
As such, the company’s stocks are starting to plummet once again. CEO Don Mattrick has stated that Zynga will continue to pursue social gambling. Zynga is in the process of applying for an online gambling license from Facebook, which will be expanding into Spain and Italy. This could be a highly profitable venture, but investors have learned not to hold their breath.
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