Facebook's Rise Opens New Door for Online PokerCompany Files IPO on Friday and Will Raise Billions |
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As Facebook Inc cashes in on its Initial Public Offering, other web-based companies such as Zynga Inc. have hitched a ride onto the rise of the social media giant by developing lucrative online games. With 35 million active monthly users, some of which buy virtual chips, Zynga Poker lays dormant as a potential powerhouse in a real-money online poker market.
Facebook snags a 30-percent cut from Zynga, which represents 12 percent of the site’s revenue. In March, Zynga announced it would do some business stag in possible preparation for real-money gambling.
However, before Zynga Poker converts some of its database to real-money players, governments at the state level — in the absence of a federal bill — must first solve the issue.
DoubleDown Casino, another one of Facebook’s popular gambling apps (5.1 million active monthly users), caught the attention of Nevada-based International Game Technology. IGT purchased Double Down Interactive earlier this year for $500 million, in anticipation of licensed and regulated online gaming somewhere. DoubleDown recently launched free-play hold’em.
IGT and its social gaming subsidiary cannot run online poker in Nevada unless partnering with a brick-and-mortar company. In January, the Las Vegas Review-Journal reported that there exists some concern about IGT competing against its own casino clients.
In April of this year, Forbes reported that Wynn Resorts is in talks with Zynga about a potential “strategic partnership.” In the spring of 2011, before the image of online poker took a massive blow, Wynn entered into a similar agreement with PokerStars. The partnership dissolved after PokerStars owner Isai Scheinberg was indicted by the federal government.
Caesars Entertainment Corp. didn’t fail to acquire an interest in social media-based gaming. The owner of the valuable World Series of Poker brand scooped up Playtika and now runs a Caesars Casino on Facebook that has 1.8 million monthly users. The company will run online poker in Nevada through Gibraltar-based 888 Holdings.
Bwin.party Digital Entertainment, which has a deal with Nevada’s MGM Resorts International and Boyd Gaming, has plans to enter the social gaming space. Bwin.party does business in regulated markets all over the globe. The company also recently struck an agreement with a California tribe in anticipation of online poker becoming legal there.
The decade-old World Poker Tour — now owned by Bwin.party — has a branded Facebook app with 160,000 monthly users. The platform was developed by Hands-On Mobile Americas, Inc.
Although it hasn’t made any foray into social media-based gaming, Nevada web-gaming applicant Shuffle Master, Inc. has ties to Zynga. Shuffle Master’s chief strategy officer is a former VP of Studios at Zynga.
As for Facebook itself, the California-based company has said that it doesn’t want to dabble in U.S. online gambling. However, the Harvard dorm creation reportedly did express interest in testing an online gambling product in Europe.
Follow Brian Pempus on Twitter — @brianpempus
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