Posted on: April 12, 2022, 11:15h.
Last updated on: April 12, 2022, 11:15h.
The Bally’s Corporation is investing $5 million into Snipp Interactive (OTCPK: SNIPF) in exchange for a 9% ownership position in the digital marketing firm.
Bally’s Atlantic City is seen from the Boardwalk. Bally’s patrons enrolled in the casino’s rewards program can exchange their loyalty points for Gambit online social gaming tokens, which can in turn be used to win real cash. Bally’s this week became a 9% owner of Gambit parent Snipp Interactive. (Image: Casino.org)
Snipp acquired social gaming platform Gambit Rewards in January for $5 million. The free-to-play iGaming network allows users to exchange loyalty points from an array of participating companies for Gambit tokens. Those tokens can be used to gamble on Gambit’s interactive slots, table games, and sportsbook.
Tokens can be used for gift cards, charitable donations, or redeemed for cash. Tokens can also be re-exchanged back to loyalty points. Gambit claims to have active partnerships with more than 200 rewards programs that include credit cards, airlines, and hotels.
Bally’s has signed an order of agreement with Snipp to purchase 25 million common shares of the Gambit owner at US$0.20 each. The deal gives Bally’s a seat on the Snipp Interactive board of directors, plus a first right of refusal with respect to any outside party offering to purchase a majority position of Snipp’s assets.
“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.
The current Bally’s Corporation was formed after the company previously known as Twin River Worldwide Holdings acquired the iconic casino brand from Caesars Entertainment in 2020. The Rhode Island-based firm owns and operates 14 casinos across 10 states.
Bally’s hopes to transition Gambit’s robust database of social gaming players into real money patrons at its physical casinos and online gaming platforms. Along with its land-based holdings, Bally’s owns iGaming operators Gamesys Group, Bally’s Interactive, and daily fantasy sports firm Monkey Knife Fight.
Bally’s currently operates real money iGaming sites in New Jersey, Pennsylvania, and Delaware. The company additionally operates retail and/or online sports betting in Nevada, Colorado, Louisiana, Mississippi, Iowa, Illinois, Indiana, Virginia, Pennsylvania, Delaware, New Jersey, and Rhode Island.
By acquiring a 9% ownership position in Snipp, Bally’s will be able to utilize the Gambit Rewards network at an arm’s length. For Bally’s casino rewards members who reside in a state where iGaming is not permitted, the social gaming operation will allow those customers to exchange their Bally’s Rewards points for Gambit Tokens.
Gambit Purchase Proves Successful
Atul Sabharwal, founder & CEO of Snipp Interactive, said the company’s acquisition of Gambit Rewards was to better align the digital marketing agency with the US gaming industry. The bet is paying off just a couple of months after the takeover announcement.
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,” said Sabharwal.
Gambit circumvents state gaming laws by not allowing players to deposit cash or exchange actual money for gambling tokens. The platform says a user can only lose loyalty points — not actual cash — while gambling on the platform.
“Gambit was designed by a team of financial engineers with deep experience in highly regulated markets. Now anyone can enjoy the fun and excitement of rolling the dice, but without the fear and risk of losing [money],” a Gambit company statement read.