Zynga Won't Make $100B But Will Be Top Dog
On Tuesday, a report from businessinsider.com quoted a "source close to Facebook" as saying the social site could generate $100 billion in revenue when online poker becomes regulated.
Poker junkie blogger compncards explains why Facebook won't make $100 billion, but will likely be the top dog in online gaming.
Farmville Poker Coming to a Computer Near You
The internet is buzzing about the prediction Facebook could potentially draw in $100 billion in revenue (assumedly a year) from online gambling.
That's a gross overestimate but I do feel, as many others do, that Facebook will essentially be the top dog in online gaming.
For starters, ;ook at how much money it makes off of Zynga Poker alone each year.
At least $400 million - and that's just for a "free gaming" product.
Once online gambling is opened up on Facebook, hundreds of companies are going to jump on to give Zynga a run for its money.
Zynga is clearly going to have the upper hand and lion's share of the market, but there will still be enough players to go around.
Facebook is also already the largest community of online social gaming. By far.
Once it goes live with real-money online poker, even if a small percentage of its users convert to live money it will easily become the largest player base in the business.
And just think about all those yummy fish at the poker tables.
Don't believe me?
Go play at Zynga for a couple of hours and then imagine many of those players with actual money to wager.
You want to play Facebook poker now don't you?
So get ready for the messages like "XYZ PainInTheButt just took down the Pig Shuffle Sit-n-Go for $125. Do you want to play?"
Those messages are coming.
Multiple Ways to Fund Accounts
I entirely expect Zynga's virtual credits platform to be offered to players as a way to fund their online gambling accounts.
Instead of having to transfer money through a bank, they can just buy credits for live gaming in the same way they did for social gaming.
Of course, Zynga will have to work out the legalities of this with the various states, but this ease of purchase will help players fund accounts including possibly with Paypal.
With that kind of transaction ease, Zynga will convert an unprecedented number of social gaming clients over to the live action side of things virtually instantly.
Social Gaming Will Still Be a Strong Market
The positive benefit for Zynga, and other companies that pursue this angle, is that the social side of its gaming product will still stay highly profitable.
Will there be a dent in its social gaming profits?
Social gaming may take a hit, but it will still generate incredible revenue just due to the mass of humanity that will elect to not "gamble" their money.
It won;t be $100 billion - but it will be the most in the industry.
Remember, it's not "gambling" to buy credits and throw them away all at the free tables.
It's called "gaming."