Nevada Legislation Prompts Zynga Stocks to Rise
Since the legalisation of online gambling in Nevada the stocks of social gaming companies are soaring. In the last two weeks Zynga has surged ahead with expectations high that more states will follow Nevada’s example
Recently Zynga’s shares rose a further 15% to $3.67 as people expect the company to launch itself in the real-money gambling market. Furthermore, it is expected that New Jersey will soon pass legislation allowing online poker which will give Zynga the opportunity to offer interstate online gambling.
Zynga is already offering real money gambling in the UK thanks to a deal with bwin.party and is doing well with its mobile gambling software.
According to BMO Capital Markets analyst Edward Williams, “as states legalise some form of online gaming, you’re likely going to see Zynga positively impacted, revenue from web-based betting will probably measure in the billions.”
Zynga is currently applying for a license to operate in Nevada; however, it is thought that the application and approval process could take a year or more so Zynga may not start enjoying the benefits of the industry for quite some time.