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More Bad News For Zynga

Zynga no longer looking for a gambling license in the United States. This is a big blow to investors and share holders.

Zynga no longer looking for a gambling license in the United States. This is a big blow to investors and share holders.

Only a few years ago, the latest and greatest vision for gaming’s future laid not in fancy graphics, not in massively multiplayer rich environments and not in very deep score lines. The future of this described several years ago was in social gaming. Social gaming exemplified by Zynga and its products Farmville and Zynga Poker was all about connecting people through social networks. If you played Farmville, it’s a very simple time-based game. The whole business model really was all about getting people become impatient enough so that they would buy in-game items with real money. Well, when Zynga became a public company a few years ago, there were many doubters regarding whether the idea of waiting players to get impatient enough so that they would buy in-game items is a viable model. Unfortunately for Zynga shareholders who are doubters, this has been proven right. Zynga is now under $3 per share and it might be delisted from the NASDAQ if it sinks even further. This is quite a sad conclusion for a company that used to be the trailblazer in social gaming.

The Most Recent Blow

If the long series of stock downturns for Zynga wasn’t bad enough for shareholders, they were in for an even more stunning development lately. Zynga applied for a gaming license in Nevada last December 2012. Why is this big news? Well, one of their most popular products involved Casino style gambling games like Poker and others. Obviously, putting real world money through Casino hookup for these games would help turn Zynga’s massive reach into an online gaming cash cow. Unfortunately, the company recently announced that they are no longer pursuing a gambling license for the United States. In short, the dreams of a Vegas based online gaming accept to a US Zynga game is over. This is really crushing news for investors because this has been the only hope that many investors have for Zynga to actually make money. As a result, the price has dropped by as high as seventeen percent. This is a big blow for people who bought in to the stock when Zynga announced that it is pursuing a gambling license because the stock shut up by fifty percent when it was announced. Zynga investors, back to where they started, looking at a company that looks like it’s going nowhere past and cash reserves are trembling. This is a quite sad turn of events for one of the most addictive social games ever invented Farmville. Unfortunately, it’s easier to come up with winning farm in Farmville than making money off the stock of the company behind the game. Then again, this is the internet and you can never count anyone out until the fact they disappear. Zynga, even though it’s now under $3 might still have a lot of fight left in.