While Zynga has been receiving a lot of bad press it is not all bad news, last quarter the company performed better than expected and it is moving closer to becoming an online casino.
It has been announced that Zynga will be launching a real money gambling initiative in the UK in the first half of next year.
Zynga will be partnering with bwin.party to offer a slots simulator based on its FarmVille game. Zynga has said that this is “only a first step” towards a larger gambling business.
The announcement and the quarterly revenues of $316.6 million (above the $256 predicted) saw share prices rise almost 14% to $2.42.
Zynga did suffer a loss of $52.7 million last quarter; however, on an adjusted basis the company broke even, inline with analysts’ predictions.
The biggest problem for Zynga is maintaining players’ interest. CEO Mark Pincus said that Zynga “didn’t create enough new heat for our players by innovating on content and features.” Futhermore, Zynga’s monthly unique paying customers fell by 28% to 3 million.
However, the partnership with bwin.party could really turn things around for Zynga and if it’s successful then Zynga has the potential to grow into a gambling empire.