Alcaraz Equity research Analysts have reiterated their Buy rating on Zynga, saying they are optimistic on the game maker’s hit mobile game called Hit it Rich! Free Casino Slots. Statista’s chart provides ample evidence that Zynga still holds the potential to earn from mobile games, says a report from Seeking Alpha by Alcaraz Research.
Zynga’s Hit It Rich still popular
Zynga is in the process of launching two new mobile strategy titles, but the research firm is more optimistic on the casino game due to a recent Statista’s report that provided encouraging numbers for the Hit it Rich! title.
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Social casino games could be real growth driver for the company. In the top 10 grossing titles of iOS games in America, Big Fish Casino, Hit It Rich and GSN Casino are at the sixth, ninth and tenth spots respectively. The social casino genre is the third most popular segment after strategy games such as Game of War, Boom Beach and Match 3 Puzzle, says the report.
Though Zynga’s title is relatively small when compared to daily revenue from Clash of Clans, still, “going beyond social casino slots to include other games like Blackjack, Bingo, or Baccarat could help Zynga attract more players for the Hit It Rich! franchise,” says the report.
Casino segment holds big potential for Zynga
By the end of 2015, the casino market is expected to grow to $3.3 billion, and the social casino genre already accounted for 11% of mobile gaming revenue last year. According to Newzoo, mobile games revenue will total $30.3 billion this year. Assuming the same 11% share, the social casino genre would be worth $3.3 billion.
Developer Spooky Cool Labs was acquired by Zynga in 2013, and that is turning out to be an intelligent bet for the company. Zynga should exploit the gambling talent of Spooky Cook Labs to earn revenue from real money gambling and expand its U.K.-only ZyngaPlusPoker and ZyngaPlusCasino titles. Also it will be in the best interest of Zynga to continue with virtual money gambling because in the United States, rules regarding real-money gambling are very strict, says the report.