The progress of social gaming
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Rescooped by Nikolaos Volikakis from The growth of the Online Gambling industry and the aspects of the Social Gaming
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Why Zynga's real-money gaming opportunity is small, Seeking Alpha

Why Zynga's real-money gaming opportunity is small, Seeking Alpha | The progress of social gaming | Scoop.it

One of the blue-sky opportunities that Zynga is exploring is to begin offering real money games in addition to its play money games. Essentially, the firm could take some of its existing games like poker, slots, bingo, and/or blackjack and give the user the opportunity to wager real money for real payouts-basically an online casino. As online gambling is already legal in parts of Europe, you can expect that area to be the first geography the firm focuses on. And while online gambling is currently illegal in the US, there has been some discussion of legalizing it (at least on a state-by-state basis).

 

There is a fair amount of risk that comes with entering a highly regulated business. In highly regulated businesses, there is a dramatically higher likelihood that the firm could be fined significant amounts of money or face civil and criminal charges for any violations. While partnering with established players in this business could mitigate some of this risk, a partnership will also decrease the size of the opportunity. Additionally, there is also the risk of an image problem. Gambling firms are seen as aiding a vice and if this reflects poorly on Zynga it may hurt their existing business. None of these risks are insurmountable, but should be considered carefully.

 

Bottom-Line: The non-US real money gaming opportunity is likely smaller than many people realize and the US gaming opportunity,while potentially large, far from a slam dunk.

 

Other sources:

http://www.gambling911.com/businessfinancial/facebook-hits-new-low-ipo-lock-ends-081612.html

http://www.gambling911.com/businessfinancial/zynga-adds-real-money-gambling-spends-75k-lobbying-efforts-081612.html


Via Carl Zide, Vasileios Volikakis
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Vasileios Volikakis's curator insight, May 9, 2013 10:03 PM

The questions then become how big are these markets, how difficult are they to enter, and what percentage market share can Zynga realistically hope to take. To answer the first question, H2 Gambling Capital estimates that the online poker gaming market (excluding the US) was €2.9b in 2011 and H2 estimates that this market will grow at a 6% CAGR rate through 2015 (€3.6b). To answer the second question on difficulty of enter these markets, we need to examine the regulatory environment. The regulatory environment across Europe is very fragmented with each country having its own regulation and restrictions.

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Zynga enters real-money online gambling market

American social and media gaming firm Zynga Incorporated has entered the world of real-money online gambling after launching web and download versions of its ZyngaPlusPoker and ZyngaPlusCasino brands for players in the UK.


Via DW, Vasileios Volikakis
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Vasileios Volikakis's curator insight, May 4, 2013 2:30 PM

Definitely, the deal between Zynga and Bwin will cause many changes in online gaming area, the most important issue for gambling operators now, is it to make clear their targets about how will they use the social games in synergy with their core business as well as the customer engagement policy still remains uncertain. Lets have some thoughts about it!

     

 

 

Kostas Sarris's comment, May 5, 2013 8:06 PM
I don't think so that this deal is gonna be effective, i belive that somewhere they will complex their operations Vasileios. Of course it is something new to us but at the same time it hides dangers for the simple user...
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Travel association exec to lead US gambling lobby

Travel association exec to lead US gambling lobby | The progress of social gaming | Scoop.it
LAS VEGAS (AP) — The new head of the U.S. casino lobby is a 38-year-old with ties to the travel industry who says he will seek consensus on Internet gambling.
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Rescooped by Nikolaos Volikakis from The growth of the Online Gambling industry and the aspects of the Social Gaming
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888 in talks with Facebook regarding real money online poker, Aaron Goldstein 911Gambling

888 in talks with Facebook regarding real money online poker, Aaron Goldstein 911Gambling | The progress of social gaming | Scoop.it

888 Poker has begun talking with Facebook, the social media giant, to bring “real money” online poker to jurisdictions where such activity is permitted, a la Great Britain, according to a report on eGaming Review.

 

Facebook earlier in the month launched its first “real money” online gaming venture in the form of what looked like a kid’s bingo site. Bingo & Slots Friendzy, developed by Gamesys, is only available to those living within the United Kingdom at this time.


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Vasileios Volikakis's curator insight, May 7, 2013 7:02 AM

888 Poker is currently ranked as the 4th most trafficked Web cardroom in the world

Facebook earlier in the month launched its first “real money” online gaming venture in the form of what looked like a kid’s bingo site.  Bingo & Slots Friendzy, developed by Gamesys, is only available to those living within the United Kingdom at this time

Mathaios Tsoukaris's comment, May 7, 2013 7:06 AM
Go on Bill!
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Understand the "Freemium" Business Model - BusinessWeek

Understand the "Freemium" Business Model - BusinessWeek | The progress of social gaming | Scoop.it
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Vasileios Volikakis's curator insight, May 6, 2013 7:11 PM

The "Freemium" business model is based on companies offering their basic services for free while charging a premium for advanced features. With a lack of available comparison sets, Freemium startups often do not know how they’re really performing, and they sometimes aren’t sure how to measure their performance.