As my colleague, Michael Fowlkes, suggested last week, Zynga (ZNGA) has filed an application with Nevada regulators that could eventually allow it to enter the real-money gambling market. The news sent the stock sharply higher as real-money gaming is seen as the company's best hope to get turned around.
The company said in October that it signed a deal to offer online poker and casino games in the U.K. starting in early 2013.
The company did not say exactly what its plans are if it receives approval to run games from Nevada, but the company's earnings have faltered as its older Facebook (FB)-based games have gotten less popular.
The company's “application for a preliminary finding of suitability” could take 12 to 18 months to process, but the company would be able to apply for a gaming license if it receives the preliminary approval. The company says that process takes two or three months.
Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at firstname.lastname@example.org or follow him on twitter @BRatMICenter.