Bally's to buy 9% stake in Snipp for $5M, integrate its loyalty gaming platform to properties
Casino and entertainment giant Bally’s Corp. is set to purchase a minority stake in provider of digital marketing promotions and loyalty solutions Snipp Interactive, the parties announced on Tuesday. Additionally, a commercial agreement has been reached for the integration of the SnippLOYALTY platform into Bally’s physical and digital properties.
Snipp announced that the agreement to invest $5 million in the company has been signed by a Bally’s subsidiary. As part of the investment, Bally’s will be entitled to nominate one director to Snipp’s board, 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, a press release informs. Completion of the investment is subject to the approval of the TSX Venture Exchange, 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 million common shares of Snipp at $0.20 per share -Bank of Canada closing FX Rate on April 11- as part of the transaction.
“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.
But also importantly, Bally’s and Snipp will also enter into commercial agreements whereby the gaming giant will become Snipp’s exclusive gaming partner for the company’s loyalty gaming platform, Gambit, recently acquired as part of Snipp’s February purchase of loyalty solutions provider Gambit Rewards.
“Our acquisition of Gambit was intended as a way to better align ourselves with the gaming world,” added Sabharwal. “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.”
As part of the commercial arrangement, 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, a press release explains.
Work is set to 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 $10 million.
“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,” Snipp said in a statement.
Launched in 2019, and acquired by Snipp in 2022, Gambit Rewards is described by the company as 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 through Gambit. This system, explains Snipp, offers more choices for consumers and unlocks “some of the $100 billion 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, Gambit Rewards Founder & CEO. “Our ability to deliver a proprietary gaming experience to consumers in nearly every state will help to expand Bally’s presence across the US.”
Lastly, as part of the commercial arrangements between the parties, 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.”