Zynga And Facebook Modify Relationship Status and Obligations

It was only last month that we reported on Zynga signing into an agreement with bwin.party to offer real money online poker in the first half of 2013. Late Thursday saw a very interesting twist in the story where there was a filing with the Securities and Exchange Commission from Zynga.

The filing in effect sets new rules for the relationship between Facebook and Zynga. In terms of the filing the existing five year deal which linked these two giants has been modified. According to the new deal Zynga on the one hand will no longer have to run Facebook ads or Facebook’s credits on any games which operate outside of the Facebook platform.This will in effect free up Zynga to launch their games on standalone platforms and other social networks.On the other hand Zynga will no longer enjoy their current favored status from Facebook . Even more interesting is the fact that Facebook will now themselves be allowed to develop their own games. This cutting off ties for both sides is what many believed was long overdue.

The most significant stipulation in the agreement is however  the crux of the issue,” If Facebook allows real money gambling games on the Facebook web site in countries where Zynga has real money gambling games, Zynga will subsequently launch such games on the Facebook web site, if certain conditions are met by Facebook.”

The mutual relationship between these two was once considered unbreakable and it would be interesting to know which party pushed for the revised changes in their agreement. It is worth remembering that Facebook provided up to 80% of Zynga’s revenues. On the other hand Zynga’s contributions to Facebook have taken a knock from 10% to 7% of Facebook revenues.

Whichever party initiated the new status quo, it is clear that they will still need each other in a diminished capacity. What is certain is that Zynga is set to offer real money online poker on Facebook in one way or another.

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