Zynga Online Gambling Revenue Could be $5 Billion Claims JP Morgan
Zynga, which offers the largest free online poker site in the world, has gone all in with its push to offer “real money play” games. JP Morgan claims that Zynga can potentially generate $5 billion in revenue after the company announced it was in conversations with interested parties to offer the “cash play” platform.
Online gambling represents a market opportunity of between $3.5 billion and $5 billion, which will be realized by 2015, according to the note.
JP Morgan has set a price target of $12 for Zynga based heavily on the prospect of online gambling within Zynga's games. On Thursday, the company announced it had added a new Bingo game. Bingo is among the most popular games in the “real cash” online casino sector.
Case in point, Playtech disclosed this week that Bingo revenues were up 9 per cent to €4.1million this past quarter. By comparison, its popular poker platform witnessed revenues decline 2 per cent to stand at €5.5 million.
The cash cow of the online gambling sector is on the casino end. Playtech reported a 13 per cent increase n the quarter to €32.8 million.
- Aaron Goldstein, Gambling911.comSubmitted by Aaron Goldstein on Thu, 01/26/2012 - 20:58 -->