Zynga Inc (ZNGA): Real-Money Gambling

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Caesars will also get benefits from its new growth venture, Caesars Growth Partners, which will focus on investments from private equity firms Apollo Management and TPG Capital. This will help in the pursuit of long-term growth opportunities in real-money online gaming, social gaming, and international expansion. It could be seen as a big asset for the company. The new growth venture could also include investments in Macau and South Korea. Other Asian countries are also working on legalizing gambling, which could provide new investment prospects for Caesars Entertainment Corp (NASDAQ:CZR) Growth Partners.

Hold ‘em

Seeing the SimCity debacle, and the accelerating decline of active users towards social games, it is not the right time to invest in Zynga Inc (NASDAQ:ZNGA). However, Zynga’s foray into online gambling could be seen as a positive step, but as the company is new to it and has a strong competitor like Caesars, it is better to hold this stock for upcoming quarters.

Ranu D has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Tongue-Tied At Social Gaming originally appeared on Fool.com.

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