A subsidiary of Bally’s Corporation signed an agreement with Snipp Interactive to acquire a minority stake at the global provider of digital marketing promotions, rebates and loyalty solutions.
First Refusal to Competitor Acquisition Bids
Bally’s Corporation’s subsidiary will invest a total of $5 million in Snipp and as part of the investment will gain the right to nominate one director to Snipp’s board of directors. The board is expected to increase in size to five members. Bally’s is also gaining the right of first refusal in relation to any acquisition offer submitted to Snipp by a competitor of Bally’s.
“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.”Adi Dhandhania, COO, North America, Bally’s Interactive
Subject to the approval of the TSX Venture Exchange (TSXV) and satisfaction of other customary closing conditions, the investment is making Bally’s owner of approximately 9% of the issued and outstanding common shares of Snipp: Bally’s has subscribed to 25 million shares valued at CAD$0.25 ($0.20) per share at the Bank of Canada’s closing exchange rate on April 11, 2022 under the investment, and subject to a four-month-and-one-day hold period under Canadian securities laws and the policies of the TSXV.
Bally’s is not paying a finder fee in relation to the investments and Snipp will be using the proceeds of the investment for sales, marketing and general working capital purposes.
Gambit Rewards Commercial Agreements
Snipp’s loyalty gaming platform Gambit will be the focus of commercial agreements, making the omnichannel gaming provider Snipp’s exclusive gaming partner for the loyalty platform. Snipp acquired Gambit Rewards in February this year.
“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.”Atul Sabharwal, Founder and CEO, Snipp Interactive
Bally’s will receive a three-year license of the SnippLoyalty software platform at arm’s length rates to implement it across its physical and online properties, beginning with two physical locations in the second quarter of 2022. Further, the agreements will allow Bally’s to license the source code for the specific versions of the software implemented at its properties for a price of $10 million.
Richard Pistilli, founder and CEO of Gambit Rewards, outlined the strategic position of Bally’s on the US gambling market, “with 14 casinos, a racetrack, and digital sports betting properties across the country,” which makes it “the perfect partner to power Gambit’s Loyalty Gaming platform.”
“Our ability to deliver a proprietary gaming experience to consumers in nearly every state will help to expand Bally’s presence across the US,” Pistilli added.
Certain free-to-play games and trademarks from Bally’s will be included in the Gambit Rewards platform following the agreements and will soon become available to Bally’s members, while Gambit members will be able to exchange their Gambit reward tokens in the form of Bally’s loyalty points at arm’s length rates.
The Gambit Rewards platform will be rebranded shortly after the closing of the commercial agreements with Bally’s.