Zynga Abandons Plans to Enter US Gambling Market
Zynga has announced that it is scraping its plans to enter the real money US online poker and gambling markets.
In its second quarter report the company said that “While the company continues to evaluate its real-money gaming products in the United Kingdom test, Zynga is making the focused choice not to pursue a license for real money gambling in the United States.”
Earlier this year the ex-CEO of Zynga, Mark Pincus, announced that the group were intending to enter the US gambling market. Zynga’s investors were pleased with Pincus’ announcement and Zynga had even gone as far as to apply to the Nevada gambling authorities for a license to operate online poker.
After last week’s announcement many of Zynga’s investors pulled out and the company’s shares dropped by up to 20%.
The new CEO Don Mattrick has said that Zynga will “continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings.” However, for the time being the company will focus on the UK gambling market where real money games are already available.