Zynga is facing a tough battle. The inevitable erosion of its player base will be a massive blow to the games developer's profitability, according to analysts. Recently, the company announced that daily active users of their games were reduced to only 39 million this quarter to last year's 72 million. This is equal to over 40% of their entire player base.

Despite the massive user exits, the company managed to beat expectations from financial analysts. Experts saw the company gaining only US$183 million this quarter. The latest financial report of Zynga stated that it managed to gain US$230.7 million, way above the projected revenue mark.

The troubled online games developer announced that competition from online gambling firms in the United States will likely strike the killing blow on Zynga. The company decided to stop pursuing a real money license to operate Internet gambling because of this.

While the company continues to evaluate its real-money gaming products in the U.K. test, Zynga is making a focused choice not to pursue a license for real-money gaming in the U.S.," explained the company regarding their next move.