For a long time, Zynga operated at the highest levels of the social gaming sector. However the Californian group which is currently experiencing financial difficulties and was formerly led by Mark Pincus, has been overtaken by a completely unexpected player. The company is known as Caesars Interactive, a subsidiary of Caesars Entertainment dedicated to online gambling, and now seems to have taken its place as the sole leader in a rapidly developing market.
Caesars Entertainment’s astonishing growth in the social gaming sector
Caesars Interactive, a subsidiary of Caesars Entertainment, which focuses on virtual gambling games (CIE) is currently experiencing exceptional growth: hence, the group has experienced a 95% increase in revenue compared to the same period in 2013 in the area of social and mobile games during the second quarter of the current year. The group has experienced continuous and significant growth since entering into partnership with 888 Holdings in March 2011. The company known as 888 Holdings had hoped to obtain a license which would make it possible for it to provide online poker to residents of Nevada, at the time. Caesars has currently reviewed its priorities which excludes card games.”An assessment of Caesars Entertainment’s activities during 2014’s third quarter indicates that the Las Vegas based business remains the undisputed new leader in the social casino games sector.”
An assessment of Caesars Entertainment’s activities during 2014’s third quarter indicates that the Las Vegas based business remains the undisputed new leader in the social casino games sector: CIE has taken over close to 20% of the global market! Its main rivals, International Game Technology (IGT) and Zynga have been unable to keep up with it, and own 11% and 9% of the market share respectively. It is worth noting that Zynga still remains in the lead with regards to dedicated poker applications. Thanks to Zynga Poker ™ whose success on Facebook looks set to continue, the firm could envisage a constant change in revenue, although closing the gap would be very difficult.
Caesars intention to capitalize on social games to repay its debts
In spite of the fact that Caesars Entertainment had already taken over the social gaming market by July 2013 - a period corresponding to Zynga’s fall, whose recent layoffs have yet again upset the delicate balance obtained – it is the intention of the Nevada based multinational to capitalize on social games in order to offset its heavy debt. As a matter of fact, Caesars Entertainment is also experiencing a turbulent period with the company being required to pay $24 billion to its creditors. At present, nearly 95% of the revenue generated by Caesars Entertainment comes from social games. By the end of the year, CIE is expected to earn approximately $ 2.7 billion from social casino games. It would appear the organization still has a long way to go...