Zynga Explores Online Gambling

(New York Post) - Social-gaming company Zynga tipped its hand by acknowledging that it was exploring getting into online gambling.

Some Zynga watchers took this to mean that the company could start accepting real-money wagers. Zynga is already on the online gaming scene with its worldwide Zynga Poker game, which boasts 30 million monthly users who bet virtual currency.

"We know from listening to our players that there's an interest in the real-money gambling market," Zynga said in a statement Friday. "We're in active conversations with potential partners to better understand and explore this new opportunity."

However, several analysts said that Zynga is not cut out for the business. In particular, Michael Pachter of Webush Securities said the company is not set up to handle the intensive security required to run an online gambling operation.

"They have no prayer of participating in online gambling," Pachter said. "People are vastly oversimplifying how complicated it is to provide online gambling."

To be sure, Zynga would have to commit much more to safeguarding credit-card data online -- the company had issues just trying to keep online predators from stealing users' fake chips.

Still, Zynga's massive subscriber base of poker enthusiasts is a valuable commodity to the traditional gambling industry interested in youth and the social media revolution.

Online gambling is poised for growth in the US since a federal ruling last month paved the way for states to decide on the legality of such ventures. States from New Jersey to California are considering legalizing internet casinos.

Read more: New York Post