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The world’s biggest free-to-play online poker venture, Zynga, is rumored to be joining forces with one of Las Vegas’ most recognized names, Wynn.
The New York Post first broke the story early Wednesday morning with the caveat that “odds may not favor tie-up”:
Zynga, which sees huge revenue potential in moving from pretend to real-life wagering, needs to form partnerships with casino operators in a number of states if it is to cash in on an expected boom in Internet gambling.
Since the DOJ move, Zynga CEO Mark Pincus has been touting the company’s prospects for parlaying its popular virtual poker game into real-life betting, calling the possibilities “mind-blowing.”
While Pincus is waxing poetic about poker, experts said the odds are stacked against the social media upstart, which will need to partner with more than just Wynn to become a major player.
Among the problems: Most of the proposed state legislation would restrict online licenses to those who already are licensed to run a state gaming operation. Wynn only operates in Nevada.
The New York Post report points to New Jersey, which currently has a bill that sailed through the Senate subcommittee on Tuesday, but would require its poker ventures to be tied in with Atlantic City casino properties while maintaining servers there. New Jersey appears poised to become the first state to offer online poker beyond its borders. Wynn does not own a casino establishment in the Garden State.
“Our goal is to help existing casino operators. We don’t know anything about Zynga,” state Assembly Regulatory Oversight and Gaming Committee Chair Ruben Ramos Jr. told The Post.
Stern Agee Managing Director Arvind Bhatia told the Post that if Zynga is unable to participate meaningfully in legalized online gaming here, its shares could fall as much as 10 percent because investors have baked into the share price expectations of new gaming revenue.
- Aaron Goldstein, Gambling911.com
