All eyes on Facebook’s gambling future

NOW that Facebook has made its stock market debut, all eyes are now on its plans for the future. Its crucial revenue could be in danger, as American regulators are still not fully decided on online gambling. Although some states are considering casino-style games, online gambling as a whole is still forbidden in the US. Facebook so far has escaped being in the focus of US regulators; the networking site uses virtual currency as opposed to real cash. However, the line is blurring between the two as markets have sprung up where gamblers can sell their virtual winnings. For instance, Zynga makes up 12% of Facebook’s revenue.

Leisure analyst Ivor Jones of Numis Securities, said: ‘Social gaming companies currently trading on high stock market valuations, together with those which have paid high prices to enter the space, have much to fear from regulation.’