Zynga, a U.S.-based provider of popular online social games such as FarmVille, CityVille, Café World and Mafia Wars, is quickly moving toward providing real money online gambling by working with Bwin.Party Digital Entertainment Brand. Only a month after Zynga’s official announcement and the launching of the two UK-based Zynga websites for Internet-based poker and casino games, this piece of online casino news is already giving the social gaming company’s stocks a good boost at NASDAQ.
Zynga’s partnership with Bwin.Party Digital Entertainment Brand is garnering great feedback from online poker players. However, financial analysts give advice about giving Zynga a good thought before picking up its shares of stock, since the CEO and other top executive are currently facing a class action lawsuit for insider trading. In 2012, Zynga executives and other insiders sold their stocks at $12 per share, before releasing financial reports about the poor results of Zynga’s second quarter earnings. The weak outlook projected for the rest of 2012 caused the stock prices to go down to about $3 per share, which resulted to substantial losses on the part of public shareholders.
In the U.S., Internet gambling is legal in Nevada, Delaware and New Jersey, only if an in-state casino maintains the servers for its online casino gambling and online poker operations. This means that Zynga still has to establish a partnership with, or ownership of a land-based casino in any of the three U.S. states. Likewise, the company also has to secure a state license, before it can offer any of its online poker and online casino games to the residents and visitors of the three aforementioned U.S. states.