Under the deal, agreed via a Bally’s subsidiary, Bally’s subscribed for 25,000,000 common shares of Snipp at US $0.20 per share and will be entitled to nominate one director to Snipp’s board of directors.
Bally’s will also have first refusal in respect to any offer to purchase all or substantially all of Snipp’s assets received from any competitor.
Completion of the investment is subject to the approval of the TSX Venture Exchange as well as the satisfaction of other customary closing conditions.
“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,” Snipp founder and chief executive Atul Sabharwal said.
Bally’s and Snipp will also enter into commercial agreements whereby Bally’s will become Snipp’s exclusive gaming partner for Snipp’s “Gambit” loyalty gaming platform, which the provider recently acquired in connection with its purchase of Gambit Rewards.
This will also cover Bally’s receiving a three-year term licence of the SnippLoyalty software platform, intended for implementation across Bally’s physical and online properties, the first of which will commence this quarter.
Bally’s will also be granted an option to licence the source code for the specific version or versions of the SnippLoyalty software platform implemented in any of its properties for a price of $10.0m.
In addition, Snipp will licence certain free-to-play games and trademarks from Bally’s for inclusion in the Gambit Rewards platform. Bally’s members will have access to Gambit’s free-to-play mode and Gambit members will be able to redeem Gambit Prize Tokens in the form of Bally’s loyalty points.
“Our acquisition of Gambit was intended as a way to better align ourselves with the gaming world,” Sabharwal said. “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.”
Bally’s Interactive chief operating officer for North America, Adi Dhandhania, added: “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.”