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New Zynga and Facebook Agreement Opens Possibility for Real Money Gaming

Social gaming operator Zynga and Facebook have entered into a new contract that will allow the offering of Zynga-based real-money games on Facebook. According to an SEC filing for this new agreement, Zynga must offer its real money games on Facebook in countries where the social networking site allows online gambling.  

In October , Zynga and bwin.party entered into a contract to offer real money gaming to UK customers beginning in 2013. The social gaming giant agreed to eventually offer its most popular product “Texas Hold’Em Poker” as well as other slot and casino games on a customized PartyGaming platform. Facebook has been established in the UK real-money game market since August with its debut of “Bingo & Slot Friendzy”.

Given the presence of both companies in the UK market, the stipulations of the new agreement will affect Zynga’s offering of real-money games. Under the new contract, the social gaming company will be forced to offer the aforementioned real-money games on Facebook. This may lead to significant technological development from bwin.party in order to adapt to the changing landscape. Bwin.party offers their product through downloadable clients on the Mac and PC, but it has yet to develop a Java based “Instant Play” option.  The true consequences of this new agreement will be seen as the Zynga based real-money games will be launched under PartyGaming in 2013.

The real-money game stipulation is one of many new developments in the Facebook and Zynga relationship. Through this agreement, Zynga will be able to pursue growth on other platforms and sites such as its own given the loosening of log-in, payment, and advertising restrictions. However, the agreement also allows Facebook to develop its own games to compete with Zynga.

After seeing an initial surge in popularity, Zynga has been struggling to find success with its new products on Facebook.  Zynga hopes that the new agreement will allow the struggling company to have room to grow and further market its product globally. “Our amended agreement with Facebook continues our long and successful partnership while also allowing us the flexibility to ensure the universal availability of our products and services,” Barry Cottle, Zynga’s chief revenue officer, said in a statement.

 

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