Zynga leaving U.S Gambling market

A surprising move was made by Zynga this week. It has stated that it intends to leave the U.S gambling market and has no intentions of offering its games for real money play. This was an unexpected announcement.

Dan Mattick, the CEO for Zynga, made the recent announcement. The result of this move saw the firms shares drop by 16%. The announcement stated that would not be pursuing a license. It also added that the company will work hard to evaluate its priorities relating to this sector of gaming and will monitor its growth within social media.

Zynga is still offering its services within the European and British markets however and this is why the announcement was shocking. The U.S market is one of the largest in the world and has incredible potential for large profits as a result. It is unsure as to the real reasons why the firm has chosen to not pursue the U.S market.

Zynga recently released its latest results which showed the company, overall, have seen their revenues reduced by more than 30%. Player activity has also declined since the same period last year by almost 50%. However, even though these results were poor it should be noted that the company is still in a very strong position finiancially with more than $150 million in investments and cash.

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