Zynga Online Poker Product Thriving

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Wednesday, March 15th, 2017 | Written by Adam Brown

Online poker sites are struggling to bring in profits, and there are a number of reasons as to why the game has hit a slump. Part of the problem is undoubtedly that stringent regulations have made it more difficult for both operators and players to make money from the game. Furthermore, in highly fragmented markets like the United States, low liquidity has made the gaming experience less than stellar, leaving operators struggling to generate any meaningful profits.

But is there still a strong market demand for online poker? Some argue that the hard times faced by operators is owed to dwindling interest in the game as a whole, and this may seem logical, until you look at the success being experienced by Zynga Poker.

Zynga Poker Bucking the Trend

At Zynga Poker, the game has defined the odds and grown while other online poker operators have seen their profits shrink, and revenues dip into the red. When you examine the success of Zynga Poker, it therefore becomes clear that people are still interested in playing the game, but just not in the way that they once did.

Free Money Play

At a typical poker site, the card game is much the same as it is in a regular casino, and if you want to play, you have to place a bet and spend money upfront. Zynga Poker has changed all of that. Initially, the game began like all the others, but after struggling to gain market share, Zynga rethought its strategy, and now people can play at the virtual tables via the internet and mobile apps, except without spending a dime.

Associated Revenue Streams

Instead of making money on player losses, Zynga Poker generates revenue through two streams. First, the site displays ads, and are paid a fee for each ad that is displayed, and earn more money if players click on the ads and visit the sites that are associated with them. Secondly, Zynga Poker sells in-game upgrades and credits, following the model of games like Candy Crush and Farmville. By taking the risk away from poker, the site has managed to spur interest among millennials who are not typically the target demographic for online poker. Players enjoy honing their skills and playing against other players simply for fun, and there is no need for the promise of winning a pot for the game to be appealing.

Attraction of Social Gaming

Another reason why Zynga Poker has been a success is that the site has brought social gaming into the mix. Players can interact with others on social media, post their achievements to their Facebook accounts and interact with the site in ways that you just can’t with a typical online poker site. This is another part of Zynga Poker that is a draw for millennials, and has helped to position Zynga Poker for success.

While you can’t call Zynga Poker a true online poker site, its success proves that there are people out there who still enjoy playing the game. If online operators can find ways to incorporate some of Zynga’s features into their own interfaces, they too may be able to make it in the increasingly competitive market.

Breakdown of Revenues

In Q4 of 2016, Zynga noted a 20 percent increase in its year-on-year revenues, while for the whole of 2016 business was up by a resounding 44%. Including the operator’s other social gaming products, the company produced revenues of $741 million last year, with the breakdown as follows:

– Slots: 33%
– Farmville: 22%
– Zynga Poker: 19%
– Other games: 26%

During its boom period, companies could make healthy profits specializing in offering poker games, but since the market dropped off, real-money operators such as PokerStars have had to expand their product offerings to include online casino games, and sports betting.

In the social gaming sphere, Zynga, too, has had to branch out beyond its core poker product, and as can be seen from the above figures has now established a booming social slot offering. In recognition for its achievements, Zynga even received the ‘GIA Social Casino Operator of the Year’ award, once more demonstrating that the company is still capable of great adaptability and implementing impressive innovations in the ever competitive gaming industry.