UK Regulator Investigates Social Gaming

The UK’s Gambling Commission is investigating social gaming to establish its links or otherwise to gambling according to financial website ThisisMoney.co.uk.

John Travers, corporate affairs manager at the Commission said, “The key question is, is it gambling or not?. We are monitoring developments and assessing any wider implications for licensing objectives.”

Some social games allow players to buy virtual cash and real world markets have sprung up for trading around certain games.

The moves comes on the back of an analyst warnings that an “ugly” trend of falling numbers at social gaming giant Zynga which saw daily active users drop 8.2 percent in May, the second consecutive month-on-month decline.

Doug Creutz of Cowan & Company said, “Over the past two months, trends in the casual digital gaming space have swung decisively towards mobile and away from social, at least in Western markets.”

He added that interest in Facebook gaming “may have reached a negative inflection point as more casual gamers migrate to mobile platforms.”

The news will not be welcomed by bwin.party and Playtech who both recently announced major investments in social gaming.

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