The internet gambling market is expanding in sometimes unpredictable ways. Internet gaming companies are attempting to read the market and predict where their services will be in demand. It is now common to see large gaming corporations attempt to form partnerships to enter new markets. Because of the atmosphere in the gaming industry the announcement of a partnership between game developer Zynga and gaming giant Bwin was not surprising to industry observers.
Zynga is best known as a social game developer and most of the company’s popularity and exposure depends on Facebook and gaming applications. At the time of the deal with Bwin 90% of Zynga’s revenues were generated by the company’s Facebook games. Facebook operates independently of the companies it supports and is constantly developing new features and expand into new markets. This put Zynga into an insecure position so the partnership with Bwin makes sense. Zynga was looking for a partner that would be more reliable than Facebook. Zynga hopes the partnership will generate more profits.
Zynga has experienced some serious setbacks recently. The company was forced to close three offices and lay off 5% of its workforce. Several executives have left the struggling and moved on to greener pastures. Bwin emerged as the perfect partner for Zynga especially since the company is trying to break its reliance on Facebook. Zynga wants to enter the world of real money gaming and Bwin has extensive experience in that industry. Real money gambling shows the most potential for growth and is extremely attractive to game developers and users.
Zynga Poker will be operating as an extension of Party Poker and will be competing with online casinos like Party Casino. While poker is probably the most popular game on the new casino Zynga plans to offer up to 180 casino games including slots, roulette, blackjack and other casino games. Whether or not the partnership between Bwin and Zynga will be successful is a question that has not been answered. During the last year Bwin has experienced a drop in player numbers and Bwin hopes the partnership with Zynga, which has a huge userbase, will solve this problem. To date a majority of Zynga’s players have shown a preference for free games. Whether Zynga’s players will embrace real money gaming is uncertain.