Facebook Doubles Down on Gambling

Company extends relationship with real-money operator

   

Back in August, Facebook (NASDAQ:FB) moved into the online gambling space. It struck a deal with UK operator Gamesys, which launched an app called “Bingo Friendzy.”

Well, it looks like it was a money maker. In fact, Facebook has announced another partnership – this time with 888 Holdings, which is also based in the UK. The company will develop a variety of apps for slots, casino games and even bingo.

thumbs 630 200x200 Facebook Doubles Down on Gambling
The Top 5 IPOs of 2012

Both companies have actually worked together on non-gambling titles. For example, 888’s “Bingo Island” has 630,000 players. It seems like a good bet there should be a decent number of them that will want to play for real money.

As I noted yesterday in the IPO Playbook, Facebook has been extremely aggressive with monetization lately — and gambling is a category that could provide a nice revenue lift. While it looks like the action will be in Europe, there may be a loosening of the gambling laws in the US. Already, Zynga (NASDAQ:ZNGA) is anticipating this. Consider that the company recently applied for a gaming license in Nevada.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.”  Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/facebook-doubles-down-on-gambling/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.