Playing Farmville for money?
Zynga traded higher after the company filed an “Application for a Preliminary Finding of Suitability” in Nevada, the first step towards conducting real-money gaming in the U.S. The process could take up to 18 months and if Zynga is found to be suitable it could apply for a license which could take another 2-3 months.
“Zynga has filed its Application for a Preliminary Finding of Suitability from the Nevada Gaming Control Board. This filing continues our strategic effort to enter regulated RMG (real-money gaming) markets in a prudent way,” said the company’s Chief Revenue Officer Barry Cottle, in a statement. “As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon based on legislative developments, but we are preparing for a regulated market.”
Online gambling in the U.S. is still very much in the air. Last year, the Department of Justice ruled that online gambling is legal under Federal law, but now it’s up to every state to pass legislation outlining operating procedures. Nevada and the District of Columbia moved quickly to enact laws, but clearly it will take time for every state to get a law passed, unless the federal government steps in with a national policy.
Zynga (ZNGA : NASDAQ : US$2.51), Net Change: 0.19, % Change: 8.19%, Volume: 39,622,367