Zynga Inc (ZNGA), Facebook Inc (FB): Will Big Bets Save This Gaming Stock?

Although bwin is building its own games, if it can attract enough partners, it may have a sustainable business as the backbone of a vibrant gaming market. That said, the company has been losing money as it has been focusing on its technology platform. It’s clearly a high-risk play on the real money gambling space, but one that aggressive investors might find interesting.

Facebook?

Facebook Inc (NASDAQ:FB) , meanwhile, has been struggling to turn its treasure trove of customers into the type of top-line growth that investors want to see. It hasn’t been easy, because its free service doesn’t offer the types of up-sell opportunities that LinkedIn Corp (NYSE:LNKD) does. Moreover, Facebook customers have proven extremely sensitive to how their data is used and to changes in their user experience.

If real-money gaming takes off, however, Facebook Inc (NASDAQ:FB) would be in a prime position to benefit. Indeed, the company has a massive network of customers. That proved more than enough to nurture Zynga’s business and virtually create the social gaming business. Gambling is already a big business and it’s a pretty good call that a lot of Facebook users gamble.

All Facebook Inc (NASDAQ:FB) needs to do is become a toll taker, granting access to its customers to outside gaming companies for a fee. The model is no different than an in-game purchase in a Zynga game. This isn’t to suggest that Facebook will turn into an online Las Vegas. However, it does present a massive opportunity to monetize its customers.

Social games have been popular because users opt into them. The games aren’t forced on them like advertising is. Real-money games will be very similar, only they are likely to make a lot more money. This could be a huge revenue generator for Facebook Inc (NASDAQ:FB) that its customers are happy to embrace.

Sin stocks?

So, Zynga is now courting sin stock status. Bwin.party Digital Entertainment Plc (LON:BPTY) is already there. Facebook is a toss-up. However, if bwin can turn itself into a one-stop gaming technology company it could take a small piece of every wager on its system. That same thing is true of Facebook Inc (NASDAQ:FB). This could be a great opportunity for both companies.

Zynga, however, has little to differentiate itself in this push. That doesn’t mean it won’t succeed, only that investors should hold off until it proves the new direction is working.

The article Will Big Bets Save This Gaming Stock? originally appeared on Fool.com is written by Reuben Brewer.

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