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Zynga Bosses "Interested" In Real-Money Gaming After Annual Losses

Zynga Casino’s Chief Operating Officer John Schappert has stated that real-money gambling is “very interesting” after figures suggest that Zynga suffered a net income loss of over $404 million, according to eGaming Review.

The statement comes after rumours that Zynga were looking to partner with gaming operators back in January, despite Zynga Casino General Manager Lo Toney stating that Zynga had “no plans” to enter the real-money gaming market sector last year.

Despite Zynga seeing increases in daily and monthly active users by 13% and 23% respectively, resulting in a 91% rise in revenue for 2011, heavy investments have proved expensive. The investments include product development as well as their own cloud-based platform, Cloud Z.

These are the first figures from the company since their $1 billion IPO last December.

While Zynga suffered losses, CEO Mark Pincus had said that 2011 was “a milestone” for the company. Mobile gaming has grown at a rapid rate since 2010 and Zynga has been at the forefront, with Zynga Poker, Dream Zoo and Words With Friends three of the ten highest-grossing games on the iOS platform. The future investment will bring forth Project Z, the company’s first stand-alone gaming site.

“We saw great momentum in mobile and advertising and ended the year with a strong pipeline of new games. We are excited about the opportunities in front of us to continue delighting our current players and to bring play to millions of new people,”

The sudden U-turn for real-money gaming could be a worry however, if PokerUpdate’s article on a former programmer bearing all of Zynga’s secrets is true. Previously, PokerUpdate published news on Zynga possibly rigging games for the sake of making profit and being accused of spying on regular players to make them spend more money.

It could be a concern that a company who are over $400 million down would suddenly look to real-money gaming as a possible solution, when their ethics and methods towards their customers are currently being questioned.

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Perry Garland