When it comes to competition for traffic and engagement for social gaming, is Facebook actually losing? The problems related to the Facebook initial public offering have diverted attention from the state of the business. While the general impression is that Facebook is building and growing, there are more than a few red flags, notably the company’s social gaming platform and relationships. Facebook currently earns about 12 percent of its revenues from social gaming — and likely a higher percentage of its profits — led by its deal with key developer partner, Zynga. Read the full story at All Things D.