Zynga Abandons US Real-Money Gambling Plans

Zynga, the gaming developer behind Facebook hits such as FarmVille, has announced it is pulling out of its US real-money gambling plans. But does this really mean the end of its gambling dreams as some experts fear?

Zynga's Big Announcement

In its second-quarter earnings report, Zynga Inc. announced that it would give up on a potential new revenue stream from real-money online gambling in the United States. It stated that it would not pursue an online casino license, and would instead focus its efforts elsewhere.

What does elsewhere mean? CEO Dan Mattrick said that he intends to take Zynga "back to basics" with an emphasis on the free-play games that propelled the company to its original popularity. He singled out games for Apple iOS and Google Android devices, such as the flagship product FarmVille.

Real-Money Gaming Lives On

Behind all the news about falling stocks and the death-knell of Zynga's real-money gambling plans, it should be noted that the company will continue its real-money gambling business in the United Kingdom and will continue to develop partnerships through its high-profile partnership with gambling giant Bwin.party.

Another reason for the lack of confidence among investors was the fact that Zynga's number of monthly average users has fallen by almost 40% in one year to 187 million. This shows that its social gaming product is also flagging, which is perhaps one of the reasons it is keeping at least some eggs in the real-money basket despite abandoning US plans.