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Jeff Macke of Yahoo Finance writes that the world’s biggest online poker site, Zynga, could buck the trend thanks to legalized “real money” online poker in the US.
Zynga is one of those companies that appeared to be on the downturn up until early this year when much hoopla came out of US states beginning to legalize Web gambling, Nevada, New Jersey and Delaware thus far.
Macke writes:
As discussed on Breakout last month, the former kings of Farmville are hoarding the more than $1.5 billion in cash in hopes of surviving long enough to get a seat at the table of the huge potential market for online gambling in the U.S. With UltimatePoker.com up and running in Nevada and similar sites on the way in New Jersey, Zynga's move may not be as much of a long-shot as it once seemed.
The U.S. gambling market is estimated to be $380 billion, of which only $3 billion is legalized. The government is going to figure out a way to tax the rest. The question is whether or not Zynga will capture its share as gaming is slowly legalized.
Jon Najarian, co-founder of OptionMonster.com,commented: " Anybody that can get people to buy virtual farm animals can probably get a piece of that $380 billion."
Of late, Zynga has been trading flat after significant gains during the first quarter of this year.
The share prices of Zynga Inc. (NASDAQ:ZNGA) had surged by 0.29 percent to close at $3.43 per share for the end of last trading session. The shares of Zynga Inc. had recorded 52 week high price level of $6.36 per share and 52 week low price level of $2.09 per share.
- Aaron Goldstein, Gambling911.com
