Anyone who frequents the Facebook has probably heard of Zynga, the online gaming magnate best known for cutesy games like FarmVille, CityVille, and just about any other “Ville” you can think of (um, Gagaville? Yeah, that happened…). But they also make an extremely popular game called Zyngapoker, which allows users to play the poker games they love and earn fake money doing it. And according to Facebook Director of Game Partnerships Sean Ryan, “It turns out that people are completely okay winning virtual currency that they can never cash out.” However, it seems that Zynga is no longer satisfied with the virtual money changing hands via their gaming network. They’ve put out the feelers and let it be known that they’re looking to enter the very real world of online gambling as a way to expand their popular internet enterprise.
The company is certainly poised to branch out. With several successful social networking games under their belt, an estimated seven million players using their products daily, and a recent IPO (in December 2011) that netted them an incredible $1 billion (the largest IPO since Google in 2004), they’ve got the capital to develop some new properties. And according to the company, user feedback has alerted them to the growth potential that lies in the online gambling market. As such, they announced back in October that they had plans to launch Zynga Casino via Facebook, with their first game set to be a version of Bingo.
However, there seems to be a snag. Although the company has been hiring like crazy over the past few months, poaching execs from big-name game developers like Electronic Arts, it seems that they are on the prowl for a partner that already has a stake in the online gambling arena. Despite their increased manpower, Zynga doesn’t seem keen to reinvent the wheel, especially with last year’s crackdown on online gambling sites operating in the U.S. (which left millions of users locked out of accounts and unable to withdraw funds). In short, they need to hook up with someone who knows the ropes.
It has been speculated that contenders for this potentially lucrative partnership include Betfair, Bodog, and bwin.party, amongst others. But as yet there has been no confirmation that Zynga is in talks with any or all of these gambling sites. The company certainly has enough clout in the online gaming industry to create whatever new games they wish, but if they really want to compete in the unfamiliar territory of real-money gambling they’re going to need help getting licenses at the very least. And why wouldn’t they want to team up with a company that has already done the legwork of creating games and building up a user base? So the only question remaining is who they’ll get into bed with.
In truth, partnering up with the pros is probably a smart move. Even though it means sharing profits, they stand to lose a lot less (at least initially) with this tactic. It’s not like they’re simply engaging in sports betting (posting the NFL, NBA, or NASCAR Schedule and taking straight bets). Online gambling is a complex gaming universe. So using the expertise of an established brand is really their best shot at making the merger between social networking and real-money gambling the huge success they’re betting on.
Michael Lampbert is a contributor for Men’s Daily where you can catch the latest in sports, health, entertainment, and much more.
