Earlier quoted context omitted.
I hate to admit it, but the fact that casinos continue to exist goes to show that the Zynga model will probably hold true. Both employ game dynamics to get participants to part with their money - the only difference being that casinos require you to pay up front, and Zynga doesn't have the same level of overhead. The company will only face a race to the bottom, though, as others enter this space and competition for u…
Important distinction is that in casinos players can make money. Well, as we know, only a small percentage does and overall it is the house that always wins, but humans are very bad at judging laws of probability. This "flaw" is still not in Zynga's games, and since FB prevents gambling with real rewards it will continue to be so. Your last sentence will probably hold true, unless they start producing something innov…
It will be interesting to see if management bails from Zynga over the coming quarters. Personally, I would watch and see if management unloads on any stock or options.