Zynga is contemplating breaking from Facebook’s social gaming platform and creating a real money site. The company is in the process of creating a partnership with Wynn Resorts to create a real life wagering site.
Although the new opinion from the Justice Department enables Zynga and other social gaming sites to open their doors to paying customers, they still need to contend with a number of stuffy regulations. Their legal advisers are going to be very busy trying to help Zynga setup a solid online gaming platform.
Although Zynga has created a fairly simple technology, the firm’s attorneys believe that it is going to have to fight an uphill battle as it tries to get its new business model online. One year after the Black Friday indictments, regulators and lawmakers are taking a much harder look at the people who are trying to get into the online gaming market.
Zynga is going to need to withstand a lot of scrutiny as regulators review the company’s finances and conducts extensive background checks on the firm executives. Nelson Rose, a law professor at Whittier School of Law, said that Zynga executives probably have no idea how exhaustive the investigations are going to be. Rose said that even European regulators are often shocked when they see how much time and energy U.S. regulators exert on these background checks. They are likely to become even more extensive as they try to prevent a repeat of Black Friday.
Attorneys are eager to help Zynga setup a new system. They realize that Zynga has raised over $1 billion from its IPO and will have no difficulty paying a handsome sum to attorneys who can help it setup its new gaming platform.