Zynga's Chief Revenue Officer, Barry Cottle, noted that Zynga expects to enter the market in a "prudent way."
"We anticipate that the process will take approximately 12 to 18 months to complete," Cottle said in a statement emailed to TheStreet. "As we've said previously, the broader U.S. market is an opportunity that's further out on the horizon based on legislative developments, but we are preparing for a regulated market. We've also recently partnered with bwin.party to bring the highest quality real money gaming experiences to our UK players in the first half of 2013."
TheStreet spoke to Zynga about gambling in an interview in March. Gambling was described then as an area of high interest."It is something we're exploring," said former Vice President Finance and Treasurer Mike Gupta. "We think it's an interesting adjacency to what we do in our core business. We also think we have an interesting asset in Zynga Poker, which is the world's largest online game, with over 30 million monthly average users, or players." Gupta has since left the company to join Twitter for a similar role at the San Francisco-based social network. Zynga has been under much scrutiny, as the company has cut guidance twice this year, seen its share price plummet, and recently amended its agreement with Facebook (FB) that allows Facebook to develop its own games. Online gambling is not yet legal in the United States, though Congress is currently working on legislation that would make it so. If it does indeed pass, Zynga would most likely partner with someone on this venture, perhaps one of the casino operators, though no names have been mentioned yet. Zynga shares were reacting positively to the news, gaining 7.78% to $2.50. Interested in more on Zynga? See TheStreet Ratings' report card for this stock. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV