Zynga Stock Falls After Swearing Off Real-Money Gambling in U.S.

What's This?

By Todd Wasserman2013-07-25 20:34:55 UTC

Zynga's stock fell 14% in after-hours trading on Thursday after the company announced it was abandoning plans to get into real-money gambling.

"While the Company continues to evaluate its real money gaming products in the United Kingdom test, Zynga is making the focused choice not to pursue a license for real money gaming in the United States," the company said in a release.

See also: 10 Great Android Multiplayer Games

The announcement came with reports that revenues fell 31% in its latest quarter and its daily active users dropped 45% from its all-time peak last year of 72 million to 39 million.

On the bright side, the company reported a loss of just $0.01 per share, which beat the expected $0.04 loss expected by Wall Street. Revenues also came in at $231 million, which topped the anticipated $185.4 million.

The earnings came after Zynga announced earlier this month that it was replacing CEO Mark Pincus with Don Mattrick, who had been the president of the interactive entertainment group at Microsoft.

Image: Justin Sullivan/Getty Images

Topics: Business, Zynga