New gaming platform for Zynga Poker

After months of speculation within the online gaming industry, Zynga Inc has confirmed what everyone
has long suspected: they are interested in real money gaming after all.

In a statement released to the industry press, the social gaming giant announced that it is building a new

gaming platform which will allow users to play its games for real money. This new, separate platform

will signify a move away from the social networking site Facebook, changing a relationship that has

been in place since 2007. And what a successful relationship it has been, with Zynga utilising Facebook’s

extensive user base to deliver games such as CastleVille, Words with Friends and of course, Zynga Poker,

to millions of players across the world.

Mark Pincus, the co-founder of Zynga, said “In 2007 Facebook changed the game with their courageous

move to open their platform to us all. We’re proud to be a part of Facebook’s ecosystem and we built

Zynga.com to complement their pervasive social graph.”

Pincus went onto advise that both companies will continue to work closely together, adding that

Zynga.com will be one of the first sites to be completely integrated into Facebook.

It has been reported that Zynga Poker is exploring partnership opportunities that will allow it to enter

the online market in the United States. As online gaming is currently illegal, the only entry into this

potentially lucrative market is via a partnership with a land-based casino in states such as Nevada or

California. Both states are currently drawing up a regulatory framework for the online poker industry

and are currently processing applications from local operators.

While Zynga has benefited greatly from its symbiotic relationship with Facebook, events of the past

month have exposed the limitations of such a close relationship. Zynga’s fortunes are closely tied –

perhaps too much – with the fate of Facebook.

When Facebook went public in May, the social giant didn’t provide investors the “IPO pop” that many

expected. As of May 30, 2012, Facebook’s shares are down 24%. Zynga is down 15% for the same

period.

Expect Zynga to quickly build a situation whereby they rely less on Facebook. How will Zynga’s new

gaming platform perform without Facebook? Stay tuned – we’ll know by summer’s end where this story

goes!

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