Zynga Won’t Gamble On Online Casinos

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News Posted: Fri, Jul 26 2013 11:48 AM
It has not been a great year for casual game maker Zynga. The company axed a pile of games that weren’t bringing in enough cash, broke up with Facebook, saw its stock price plummet, dealt with a lawsuit from Electronic Arts, and lost a top employee or two. However, Zynga’s fortunes looked as though they might turn around if it could convince the Nevada Gaming Board to approve it for online gambling.

Alas, that cash cow is not to be. In a statement, Zynga said, “Zynga is making the focused choice not to pursue a license for real money gaming in the United States. Zynga will continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings."

Zynga The Ville

It’s just as well. Gambling laws are tricky, and online gambling is even dicier. Instead, new CEO Don Mattrick (formerly of Microsoft) is taking the company back to its roots, with free online games. He acknowledges that there will be a period of turbulence while the company gets itself righted, and he must be hoping that investors will stick around long enough for that to happen.

If there was ever a time to give Zynga a tiny bit of leeway before bailing, it’s now; there’s a new top chief in the company, and he’s already making some bold decisions. That’s not to say that the future is looking particularly bright, but a new CEO might be able to turn the company around.
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Attention Zynga: This is the inevitable end I warned you assholes about!

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I am not surprised about their collapse, but leaving the potential online gambling? That to me seems like a very ripe investment. Alas, I have very little faith in this company being an iota of its current prowess.

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Clixxer replied on Fri, Jul 26 2013 5:28 PM

Online gaming and legal issues are two things I wouldn't want to mess with. With the success Mattrick had at Microsoft developing Xbox Live, I could see them maybe not having huge success but atleast making a profit again and growing.

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AlexHaley replied on Sat, Jul 27 2013 9:40 AM

Im not too surprised to hear this, Zynga's social facebook games all felt to similar, and they all used real money for in-game items. I think they would stand a better chance with online gambling, but i guess we will see what plans the new CEO has for them.

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