Zynga Withdraws Nevada Gambling License Application
Zynga has officially withdrawn an application for a gambling license in Nevada. Since Don Mattrick became chief executive in July, the company has moved away from its effort to create real-money gambling games in the U.S. and instead has been focusing on non-gambling versions of its games such as Zynga Poker.
There is still a huge following for Zynga Poker social casino on Facebook and mobile, however, the company will no longer be putting resources into real-money gambling in the U.S.
In July Zynga said that Zynga Poker has dropped in popularity as “competitors are closing the gap.”
The game is competing with rivals such as Double Down Interactive and other social game developers.
David Ko, an executive at Zynga, said the decline was partly due to an increase in “illegitimate credit card activity” on the web with people buying virtual poker chips with credit cards. He said he believes that future growth is in the casual end of the market, not real-money gambling and therefore “We must stay focused on our priorities. … The decision we made around real-money gambling was around focus..”