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Zynga CEO – Online Gambling is Going to Be Mind Blowing

Zynga CEO Mark Pincus thinks online gambling is heading towards a period of mind blowing innovation. “The amount of innovation you’re going to see around gambling as an entertainment mechanic is going to be mind blowing,” he said.

2012 - The year of social gambling, thanks to Zynga?

Pincus was speaking at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco. “We’re definitely talking to all of the players that you would suspect. We have incredible respect and admiration for brands and groups like the Wynn… I would expect that you’ll see a lot of these players kind of figure out their go-to-market partnerships for sure before the end of this year.”

Zynga’s Texas HoldEm Poker is the most popular casino based Facebook game with over 33 million active users a month. Zynga is working on strategic partnerships with other casino giants – like Wynn – instead of going it alone.

According to Morningstar, Zynga’s March 6, 2012 price was $14.05 per share. Morningstar rates it with one star (out of five). Morningstar Zynga analyist Rick Summer thinks “success is far from certain”. The Morningstar analyst sees a few problems with Zynga’s business model –

• A massive slowdown of user growth
• Most games have short life cycles
• User loyalty is low as users are willing to try new games, hence no economic moat
• Only 1.6% of active monthly users actually pay for virtual goods.

2012 is going to be a fascinating year for online gambling and social networking. Will Zynga become a profitable company with a loyal customer base and a wide economic moat? We shall see.

OCA News Editor

Keeping up with the latest trends in entertainment, Matt Holden brings celeb news to the front page of OCA. Matt loves numbers games and researches the highest paying lottery draws to play.