Zynga (NASDAQ:ZNGA) is perhaps planning to make a big move in the online gambling space as speculation suggests that it is looking to acquire Ongame, a Swedish poker network which enables players to play real money poker online.  Zynga is the world’s largest social gaming company with more than 240 million active users. It competes primarily with Electronic Arts (NASDAQ:EA), Playdom which was recently acquired by Disney (NYSE:DIS) and other independent social gaming studios.
Zynga currently has more than 30 million monthly active users for Texas HoldEm Poker, the most popular casino-themed game on Facebook. It recently launched two more casino games – Bingo and Slingo. Venturing into real money online gambling would be a natural fit for Zynga, which already has a massive user base and is best positioned to make such a move. It recently launched its own Zynga Platform, which could also help it host its own online gambling games and setup its own payment infrastructure to boost revenues. Zynga is currently planning to partner with traditional casino firms like Wynn (NASDAQ:WYNN) rather than going solo. Acquisitions like these would only help it enter the space faster.
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Texas HoldEm Poker is already Zynga’s most valuable game, and stands to become its largest revenue driver if it successfully makes the move into online gambling, as the average player spend is significantly higher in real money gambling games. By acquiring Ongame, Zynga will get not only a significant user base but also a great team with experience in the space, which should ease its entry.
We currently have a $14 Trefis price estimate for Zynga, which stands nearly 160% above its current market price. Gambling games like Texas HoldEm Poker account for almost 30% of its total value.Notes:
- Zynga makes wager on gambling; poised to buy Ongame, MobileEntBiz [↩]