Perhaps you've heard of Mafia Wars, FarmVille, Café World, and Zynga Poker. Zynga distributes games through social networking sites and via mobile apps. The company makes money through the sale of virtual goods associated with their games and through advertising.
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The news that most excites me about Zynga (and will be a make or break for them) is their plans to establish a real-money gambling game within the next few years. I see an IOS poker game that players can cash in and out of (with Zynga taking a cut, of course) doing incredible.