Zynga launching sportsbook with "virtual bets"

[The Buzz]

Zynga and RocketPlay are partnering to launch "Sports Casino" on Facebook. The game won't allow real-money action on sports (yet). But players can buy "virtual cash" to bet on game outcomes and prop bets for games.

http://www.sfgate.com/technology/art...ok-3841056.php

[universal4]

Spending real money to buy "virtual chips" to bet....

Sounds like spending real money to buy "chips" in a casino to bet.

Sounds like real money gambling to me.......

Rick
Universal4

[GPWA Aaron]

Spending real money to buy "virtual chips" to bet....

Sounds like spending real money to buy "chips" in a casino to bet.

Sounds like real money gambling to me.......

Rick
Universal4

The difference being you can't get casino chips without giving the casino real money. Presumably, Zynga will give players a small amount of free virtual cash to bet with. And of course, you can't convert that fake money into real money and cash out ....

[universal4]

Yep, just like any rogue casino, you can deposit but you can't cash out.

Rick
Universal4

[dr-lag]

I can't wait Zynga to have a real sportsbook. If they can achieve the level of Pinnacle, Betfair and the Asian bookmakers would be great!

[baldidiot]

The whole social gambling thing where players buy virtual chips (that have no value) with real money confuses the crap out of me. When I first heard about people buying chips to play poker on zynga I thought noone would go for it (why wouldn't they just play real poker?) but they obviously do, so what do I know!

Maybe a few shares in Zynga might be a good hedge...

[TheGooner]

Maybe - but what are you hedging against - and why do you think Zynga will succeed and not turn into another MySpace or DiggIt?

Zynga shares are now at 2.93 from a year high of over 15.00, so the money men say that Zynga isn't doing well.
Link -> http://www.bloomberg.com/quote/ZNGA:US

Interesting to note - they make around 250m a quarter in revenue - so you are right - it does generate money.
However in each of the last three quarters they've made a net loss with a corresponding dive in share price.

Zynga may turn it around - or they may go broke. I'm not sure I'd use Zynga shares as an investment yet though - wait until they double to 5.00 at least ..

[baldidiot]

It was kind of a flippant remark, I wasn't really being that serious...

Although if they do manage to turn social gamers into real money players there could be a lot of money to be made, but we need to see some real traction first - I'm still not convinced. We'll see what happens with the ex-888 exec they've pinched.