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Zynga’s shares fell 3 percent as lawmakers almost unanimously voted for a bill that would allow online gambling in New Jersey. Next stop, Governor Chris Christie’s desk where there appears to be a better than 50 percent chance he will sign off on the measure.
Zynga recently applied for an online gambling license in Nevada, however, that state’s law currently requires that federal legislation be enacted prior to offering legalized Web poker outside its borders. A federal draft bill co-authored by Senate Majority Leader Harry Reid (D-Nevada) and outgoing Senator Jon Kyl (R-Arizona) failed to muster up enough votes during the 2012 lame duck session. Proposed federal legislation has also been met with opposition from various special interest groups including state lotteries and Tribal casinos. New Jersey looks to form muiti-state compacts without the need for regulation at the federal level.
Zynga shares lost 9 cents at $2.30 in midday trading Friday following news of the online gambling bill passing in the New Jersey Senate.
While Zynga currently operates the world’s largest Internet poker site, its closest rival, PokerStars, allows for real money play. Stars is four times larger than any of its competitors in the “play for real cash” space. PokerStars has also expressed interest in purchasing one of Atlantic City’s premiere casino properties, the Atlantic Club (formerly the Atlantic City Hilton).
- Aaron Goldstein, Gambling911.com
