Analysts Say Zynga Needs Real Money Gambling To Return To Glory Days
Last year’s decision by social gaming giant Zynga to abandon real money gambling in the U.S resulted in a massive drop to their share price. At the time it tanked by 17 percent ad hit a low of $2.90. Since then Zynga has had a roller coaster ride which can only be defined as hectic. The massive changes to their management including their replacement of founder and former CEO Mark Pincus have been well documented by our team.
There have been positive signs amongst all the downs experienced in the last year. The main positive is the share price which is a far cry from the $10 IPO price but is now trading around the $4.16 mark. Despite a lot happening with Zynga many analysts are calling for Zynga management to return to real money gambling aspirations or get another team that will pursue this path.
While currently Zynga offer real money poke to UK residents with their Zynga Plus Poker the U.S. market is seen as potentially one of the biggest earners should internet gambling expand to all states. Zynga’s free-to-play Zynga Poker accounts for almost 21% of their total online gaming revenue in 2013. This is 25 percent more than revenues from FarmVille2 which only accounted for 17% of gaming revenues.
Zynga has made some progress in getting back to the leaderboard in social gaming but without the massive injection of capital real money gambling can offer, their future prospects will need other sources of revenue which are increasingly difficult to come by.