Zynga has announced that it will release its real money poker application early in 2013. Last year, the company faced stiff competition from new mobile gambling companies, owing to which it decided to explore the international real money poker gaming market next year.
According to Zynga’s latest trade report, it could not reach the predicted mark of $343.1 million, instead it generated sales worth $332.5.
Mark Pincus, CEO for Zynga, said that Facebook is responsible for Zynga’s poor performance in the second quarter of the financial year.
Apparently, Facebook has made certain changes to its algorithm, owing to which fewer games are visible, making it difficult for Facebook players to find Zynga’s social games.
Although Zynga is responsible for nearly 15 percent of Facebook’s revenue, the social networking site is no longer taking Zynga seriously as it is more interested in other projects such as the Facebook phone. Zynga, therefore, plans to launch a real money poker app that is expected to raise the company’s revenue considerably.
The new real money poker application is independent of Facebook, and interested players can use it to play real money poker either on their desktops or on their mobile devices. The app will increase Zynga’s revenue on a user basis, eliminating Zynga’s need to rely on in-app
purchases for its revenue.
During the second quarter, Zynga raked in $291.5 million in its online gaming sector. Bwin.party Digital Entertainment Plc, the owner of Party Poker, the world’s second largest online poker room, earned $261.9 million from its three online poker sites, despite the fact that it does not offer its services in the US. Every month, Bwin.party’s revenue comes up to $21.8 million, which is just 22 percent of the revenue Zynga generates every month. Zynga could further increase its revenue by offering online casino games along with its real money poker app as Bwin.party’s online casino gaming sector is capable of fetching extra revenue of $323.12 million.
Zynga, however, cannot enter the real money poker market unless it first gets a license. Speaking at a conference, Pincus said that the company is developing its first real money poker product and plans to release it in regulated markets provides it gets a gaming license. Although the gaming market in the US is attractive, it is neither open nor regulated, he pointed out, adding that there are hopes as Nevada might issue gambling licenses to casinos shortly.