San Francisco based social gaming company Zynga has confirmed that it is looking to expand into the online gaming industry. The firm launched its own poker site in 2007, which has since become the largest in the world. More than 30 million players use the site each month.
In October, Zynga announced that it was planning to launch a casino via Facebook. Zynga Casino would be another key strategy in its efforts to build its image as a leading provider in online poker.
Feedback from their customers has told Zynga that there is a huge market for real money gambling. A Zynga spokesman told reporters that they are looking for partners to help them assess the profitability of the online gambling market and the opportunities it offers.
Before Zynga can launch their site, they will have to work with regulators at every level of government. It will be months before they can obtain all necessary licenses and officially launch their site. A prerequisite to obtain these licenses will include obtaining the necessary technology to make betting secure and prevent minors and other unauthorized users from participating.
In order to satisfy these requirements, Zynga would likely find purchasing an existing company with those services to be the path of least resistance. The company would likely pay a premium for any merger it conducts, but the return on the investment could be substantial.
Zynga was a leader in the social gaming industry. Tricia Duryee of All Things Considered believes that the company may easily be a market leader in the online gambling industry as well.
One of the challenges Zynga may face is getting customers to be willing to part with their money. Even though they have acquired so many dedicated fans, Zynga has built a reputation for providing free services.
As Zynga’s founder and CEO, Mark Pincus is always looking for ways to expand his company and believes moving into the online gambling sector may be the smartest way to do it. One of the biggest challenges he will face is overcoming the legal hurdles. However, as the United States becomes more open to legalizing online poker, they are likely to have an easier time launching their new site.