Contract Changes Made Between Facebook and Zynga

It was recently announced that Zynga and Facebook have made changes to their partnership contract to put distance between themselves. The Securities and Exchange Commission recently made a regulatory filing which stated that the restructuring took place. The changes were made to get ready for online gambling options.

There was a stipulation in the amended deal which stated that Zynga’s offering of real money options will be available on Facebook when they launch a new platform in 2013. The filing stated: “If Facebook allows real money gambling games on the Facebook website 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 announcement of the changes takes place just a short time after Zynga decided to partner with Digital Entertainment plc. The two partnered up to offer online gambling options in the UK and both companies will launch real money options in 2013. PartyPoker will also be taking in Zynga’ s poker liquidity pool of players.

With the new contract of Facebook and Zynga, gaming options will be listed under Facebook’s terms of service by the end of March 2013. The contract also states that Zynga does not have to show Facebook ad units or use credits from Facebook on their games. Zynga also does not have to use Facebook as their primary platform that is non-Zynga.

Barry Cottle, the Chief Revenue Officer at Zynga, commented on the changes by stating: “We have streamlined our terms with Zynga so that’s use of Facebook Platform is governed by the same policies as the rest of the ecosystem. We will continue to work with Zynga, just as we do with developers of all sizes to build great experiences for people playing social games through Facebook.”

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