Zynga reportedly is one of the most successful gaming companies to rise in the last years. They gained huge amounts of notoriety based on massively successful games they have delivered for Facebook, such as Zynga Poker, FarmVille and Mafia Wars.
However, things aren’t too bright for the game developing company, as this month numerous investors are backing down from Zynga, in consequence of USA new money regulation on online gambling. Both Delaware and Nevada over the course of 2012 approved new online gambling regulations and just before the end of the year, New Jersey united to this motion.
The direct consequences of this casino news were that Zynga stock fell 3% last week. Even if these online casino regulations continue to appear, Zynga in no way would be facing closure. The game development company has many contracts and partnerships with fellow major gaming companies and could easily change up their preferred gaming platform to develop for.
Mafia Wars and Farmville already have a design done to let players play through the game without having to invest a single dollar, although to get extra items to build farms and mafias, credits are needed. Since the inception of both games, millions of dollars are being invested by players towards their Zynga games experience, probing the quality of the game developer.
Zynga is already trying to get new licenses in order to expand their market. For this reason, they have applied for a Nevada license and they are also trying to get a license for the UK. With this they would began expanding to the international market. A spokesman of Zynga already expressed the desire of the developer to take the Zynga experience to every corner of the world.
This decline on the investor’s side is a direct consequence as we said, of the new regulations for online casinos and online gambling in general. Analysts expect this phenomenon to calm down in near years, as the online casinos scene reaches a point where it becomes fairly regulated, to both states and online casinos
An analyst shared with the media “I doubt the Zynga shares will drop for any extent of time. When investors start to figure out that Zynga will be right in the middle of this online gambling explosion in the US, the stock will regain traction at a rapid pace.”