Zynga pull out of US real money gambling

Zynga have announced that it will no longer pursue its proposed real money gambling business in the US, the news is a blow to investors that had hoped the strategy would help bring back Zynga from free fall in the markets.

But new CEO of Zynga Don Mattrick, the former Microsoft Corp Xbox boss who replaced founder Mark Pincus as chief executive this month, said the company needed to go back to basics, anticipating two to four quarters of volatility as it “resets” its business plan.

The announcement of the withdraw saw shares dive 14% on the day and now sits some 70% off its original share price when the company was originally floated.

 “Zynga is making the focused choice not to pursue a license for real money gaming in the United States,” the company said in a statement. “Zynga will continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings.”

The company now want to focus on its original core business and attempt to bring back the 40% of its lost player base with new exciting games in the social gaming media.

It is not clear as of yet if this announcement will affect its UK partnership with bwinparty where it is already offering real money gambling.