Betting on Online Gambling Is Truly Gambling

In the following video, Fool contributor Matt Thalman discusses a few different reasons he believes investors should stay away from the casino and online gambling operators until online gambling revenues are proven over the next few quarters.

One front-runner in the online poker scene is Zynga (NASDAQ: ZNGA  ) , a company that Matt believes would be better off in the long run if it made one strategic move.

To find out what that is, and for a few reasons investors should stay on the sidelines, click on the video.

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Read/Post Comments (5) | Recommend This Article (4)

Comments from our Foolish Readers

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  • Report this Comment On May 04, 2013, at 6:04 PM, bashersuit wrote:

    All you have to do is look Bwin. Party Digital Entertainment online gambling company to see if there is any money to be made

  • Report this Comment On May 05, 2013, at 9:06 AM, 9windsurfer wrote:

    My only comment on this Motley Fool video is that the speaker makes numerous mistakes even though he has prepped to do a video for Motley Fool, and even though he is reading from cue cards. Betting on Zynga is truly (gambling) or is it? There are significant monetary reasons why states are jumping into the online gambling ring - and it's a pleasure to be watching the competitive battle to become the first state between Nevada and New Jersey (15 % tax right off the top). The population numbers, the tax percentages, the "raking", the contenders - it seems everyone wants a piece of the action. The HEADLINES "financial" commentators post here are comical. What happens if the federal government opens up the floodgates to online "poker"? The Department of Justice changed the rules, and the states are laying the foundations, and now Uncle Sam is waiting for the right balance on a bill. Mark Pincus had it right, the potential is "mind blowing". Pincus will have the last laugh because it's becoming clear he is "sandbagging" the investment community with an Ace up his sleeve.

  • Report this Comment On May 05, 2013, at 6:07 PM, bashersuit wrote:

    I agree 9windsurfer, great post

  • Report this Comment On May 05, 2013, at 6:29 PM, XMFMT wrote:

    Hey thanks for commenting and perhaps you can enlighten me a little. If the federal government gets involved which they very like may, what will the tax rate be? When the flood gates open up and everyone will be able to play online, how many people actually will? Once all of the costs of running the sights are paid, taxes are taken care of, how much profit will be left over on say $1 million in revenue?

    My point in the video is we do not know the answer to those quetions, and until we do, in my opinion its not worth buying shares of any company based on what may or may not happen with online gambling.

    Matt Thalman

  • Report this Comment On May 05, 2013, at 11:18 PM, foolsucks21121 wrote:

    I think you should better stop giving advise, buddy. The last video u told us to sell JC PENNY and BBRY.....NOW, look at them..they're going up like crazy...i think ZNGA is a good chance and it will hit 4 dollars soon..and u telling u not to buy it?? i think we should do opposite than what u want to tell us....TELL US more about engative stuffs..i will buy opposite from u..

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