Snipp Interactive Inc. (“Snipp”) (TSX-V: SPN; OTCPK: SNIPF), a global provider of digital marketing promotions, rebates, and loyalty solutions, today announced that a subsidiary of Bally’s Corporation (“Bally’s”) (NYSE: BALY) has signed an agreement to invest US $5,000,000 in Snipp (the “Investment”). As part of the Investment, Bally’s will be entitled to nominate one director to Snipp’s board of directors, which is expected to be increased in size to five directors. Bally’s will also be provided with a right of first refusal in respect to any offer to purchase all or substantially all of Snipp’s assets received by Snipp from any competitor of Bally’s. Completion of the Investment is subject to the approval of the TSX Venture Exchange (“TSXV”) as well as the satisfaction of other customary closing conditions. Following completion of the Investment, Bally’s is expected to own approximately 9% of the issued and outstanding common shares of Snipp, having subscribed for 25,000,000 common shares of Snipp at US $0.20 per share (CAD $0.25 per share)* as part of the Investment. * Bank of Canada closing FX Rate on April 11, 2022
Bally’s and Snipp will also enter into commercial agreements (collectively, the “Commercial Arrangements”) whereby Bally’s will become Snipp’s exclusive gaming partner for Snipp’s loyalty gaming platform (“Gambit”), recently acquired in connection with Snipp’s February 22, 2022 acquisition of Gambit Rewards, Inc.
As part of the Commercial Arrangements, Bally’s will also receive a three-year term license of the SnippLOYALTY software platform at arm’s length rates, intended for implementation across Bally’s physical and online properties. Work will begin on the first two deployment locations in the second quarter of 2022. In addition, Bally’s will be granted an option to license the source code for the specific version or versions of the SnippLOYALTY software platform actually implemented in any of Bally’s properties for a price of US$10,000,000.
“Bally’s is one of the most forward-thinking companies in the gaming industry and their investment illustrates the value that they see in SnippLOYALTY as well as our SnippCARE customer acquisition, retention, and engagement platform,” said Atul Sabharwal, Founder & CEO of Snipp Interactive. “Our acquisition of Gambit was intended as a way to better align ourselves with the Gaming world. Now, only a couple of months later, we’re entering a deep relationship with Bally’s. We welcome their presence on our board and look forward to tapping their deep expertise in this high-growth industry.”
“Working together with Snipp furthers our strategic goals around omnichannel integration with well-established technology that can combine rewards platforms across the Bally’s brand and thereby provide our customers with a seamless user journey,” said Adi Dhandhania, Chief Operating Officer of Bally’s Interactive, North America.
As part of the deal, Snipp will also license certain free-to-play games and trademarks from Bally’s for inclusion in the Gambit Rewards platform. Gambit free-to-play tokens, now available in 48 states, are offered as a point redemption option through participating loyalty sites. Bally’s members will soon have access to Gambit’s unique free-to-play mode and Gambit members will soon be able to redeem their Gambit Prize Tokens in the form of Bally’s loyalty points at arm’s length rates.
Launched in 2019 and acquired by Snipp in 2022, Gambit Rewards is a customer network that offers a ground-breaking approach to both online gaming and loyalty programs. Gambit converts brand rewards points into risk-free online gaming and sports betting. Users can play for actual cash winnings and other prizes without risking any real money. This system offers more choices for consumers and unlocks some of the US $100B of cumulative value that is trapped in unused loyalty points.
“With 14 casinos, a racetrack, and digital sports betting properties across the country, Bally’s is the perfect partner to power Gambit’s Loyalty Gaming platform, and we look forward to revealing the newly designed and co-branded version of the platform in the near future,” said Richard Pistilli, Founder & CEO of Gambit Rewards. “Our ability to deliver a proprietary gaming experience to consumers in nearly every state will help to expand Bally’s presence across the US.”
As part of the Commercial Arrangements, Gambit will include Bally’s branding, feature Bally’s free-to-play games, and connect Bally’s loyalty points with Gambit’s Play Tokens. Shortly after closing, the parties expect to commence on a rebranding exercise of the existing Gambit Rewards platform.
The shares of Snipp purchased by Bally’s as part of the Investment will be subject to a four month and one day hold period under Canadian securities laws and the policies of the TSXV. No finder’s fee is payable in connection with the Investment. The proceeds of the Investment will be used by Snipp for sales & marketing and general working capital purposes.