ZNGA Will Not Make It In The Gaming Space.....Casino Owners Will Run Their Own Sites
If you're wondering why this stock isn't taking off because of the on line gaming potential, it's because ZNGA isn't needed! Use some common sense folks. The casinos and gambling operators aren't dumb people. They will build and run their own sites. They don't need to pay a third party to do it for them. They'll do it themselves! ZNGA will proceed directly to zero when investors finally realize this.
Your problem is ur logic, Z control's the consumer 200M+ people that are actively engaged a month right now and growing with quality display content, The entire leisure and hospitality industry changed with a similar new entrant, not to many years ago people thought the same thing about online travel agents like expedia priceline and orbitz we see now how much these companies influence franchise operators all across the board, (like choice hotels, hilton, marriot, wyndham) and squeeze profit margins from operators. This translates into like it or not, Zynga is needed. There is no speculation that Z has a user base that any one brick n mortar casino would salivate over, if they could find a way to make the money legally. This means that as regulations pass, either state by state or federally, the value of this user base goes up as well. Zynga also has brand equity built through FB and mobile via apple iOS, and google play. Think like EA Madden, you buy the new version just cause its the new one, this customer base is loyal and they spend real money to be entertained by Z's products now. Zynga is now realizing that refining these products and maintaing quality is key to keeping this growing base happy and spending money.
Long story short: All gaming operators, and maybe even gaming manufactures are going to need to pay to play with Z and Z wants to be able to play with all of them.
Then why is BOYD aka the Borgata in NJ, the biggest casino and best poker room have a deal with Bwin and existing poker site?? Thats right....because Bwin offers a turnkey casino/poker software/network leading all to one network...with an existing world player base..... And the %'s are divvied up according to the profit share deal....zynga will have a similar deal or team up with Bwin when its all said and done...Yes, i agree they can all say f You zynga and at that point it would be good game zynga.....but why wouldnt they want the millions of poker players currently playing free chips....with a chance to turn them all instantly at one time to part of your customer base..
meant to say team up with Boyd and Bwin....the borgata is claiming they will be the first online gambling site in NJ and its almost guaranteed ...it really is a race to the first one up at this point...everyone else will be left in the dust...thankfully...both zynga and boyd have deals with bwin ...boyd takes care of the licences ....bwin takes care of the network/software....zynga pulls in the players with the marketable name and existing play money players