The world’s leading provider of social game services has begun the process of pursuing a gambling license in Nevada, offering hope for the recently struggling company, writes Wired.
Zynga hopes a ruling by the Justice Department last year will help the company obtain the license, as the ruling allows states to legalize online gambling within state borders.
“This filing continues our strategic effort to enter regulated R[eal] M[oney] G[aming] markets in a prudent way,” wrote Zynga chief revenue officer Barry Cottle. “We anticipate that the process will take approximately 12 to 18 months to complete. As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon based on legislative developments, but we are preparing for a regulated market.”
“Zynga announced a partnership earlier this year to offer gambling in the United Kingdom,” notes the article. “At the time, the social games company indicated the move was part of a broader ambition to offer more gambling globally.”
Wired cautions that even if Zynga obtains a gambling license in Nevada, investors should temper expectations. The company is still losing customers rapidly, and would need to apply for other licenses if it wishes to expand to other states.
Zynga is struggling in its traditionally successful Facebook market, where its revenues declined 20 percent last quarter, while other game makers saw revenues increase 40 percent.
The world’s leading provider of social game services has begun the process of pursuing a gambling license in Nevada, offering hope for the recently struggling company, writes Wired.
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