Bally’s Acquires Partial Ownership of Snipp Interactive

Happy Man Eating an Apple and a Laptop With an Online Gambling Key
The Bally’s Corporation expanded its portfolio this week by agreeing to purchase stock in Snipp Interactive. In total, Bally’s will acquire 9% of the company’s stock for $5 million. Along with the investment, Bally’s also gains a seat on the Snipp Interactive board of directors. Snipp owns the Gambit Rewards iGaming platform.

Earlier this year, Snipp acquired Gambit Rewards in hopes of transitioning into the gaming industry in the US. The investment by Bally’s makes that dream a reality. Now, the two companies will work together to further their iGaming interests.

For Bally’s, the investment allows the company access to the Gambit Rewards’ social gaming operations. Gambit users gamble using tokens, not real money, which allows the company to avoid gambling laws. For Snipp and Gambit, Bally’s offers a chance to enter into the rapidly growing real money gambling sector.

What Is Gambit Rewards?

Gambit Rewards is an iGaming company that offers players a free-to-play experience. Instead of wagering real money, players use Gambit tokens. To acquire tokens, players exchange reward points from a number of different participating companies. Players can exchange tokens for a variety of rewards including gift cards and cash.

Sports betting and online gambling have been rapidly growing in the US over the last two years. However, not every state has legalized online betting. Also, many states have strict restrictions on where you are allowed to bet. For instance, some states only allow sports betting at land-based casinos. However, the Gambit Rewards system provides a workaround for bettors in states with restrictive betting laws.

In January, Gambit Rewards was purchased by Snipp Interactive. Acquiring Gambit allowed Snipp to venture into the online gaming industry. Snipp, a Platform-as-a-Service (PaaS) company, is based in Canada but has operations worldwide. They work with several Fortune 500 companies, many of whom have already agreed to join the Gambit Rewards system.

How Much Did Bally’s Spend?

Part of the reason Snipp purchased Gambit Rewards was that they wanted to break into the online betting market. Even though Gambit does not offer real money betting options, it was a start. Purchasing Gambit also made Snipp more attractive to larger gaming companies.

The purchase of Gambit appears to have paid off. Snipp paid $5 million for Gambit Rewards. Now, Bally’s Corporation has invested $5 million into Snipp. Bally purchased 25 million common shares of Snipp Interactive at $.20 per share. The massive stock purchase gives Bally’s a 9% stake in the company.

Along with the shares, Bally’s also acquired a chair on the board of directors for Snipp Interactive. Bally’s will have the right of first refusal if any company attempts to purchase a larger portion of Snipp’s assets.

The Investment Works for Both Sides

It is not often that an acquisition of this type benefits all parties involved. However, that appears to be the case here, at least on paper. Snipp Interactive now has the avenue into the real money betting market that they wanted. Also, they can expand their operations with the help of Bally’s executives that have significantly more experience in the field.

For Bally’s, the purchase of Snipp stock provides the chance to expand as well. Currently, Bally’s has retail commercial casinos in 10 different states. It also operates real money iGaming sites in Delaware, New Jersey, and Pennsylvania. Now, using Snipp’s Gambit Rewards site, Bally’s can expand into new states that do not yet allow real money iGaming.

Bally’s customers also appear to benefit from the acquisition. Now, rewards members can use their Bally’s Rewards points on Gambit Rewards. This will allow them to exchange their points for gift cards, cash, or points for other rewards programs. They can also use their points to purchase tokens so they can gamble online.

Conclusion

News broke this week of an agreement between Bally’s Corporation and Snipp Interactive. According to the report, Bally’s purchased a 9% stake in Snipp, a digital marketing agency. Snipp also owns Gambit Rewards, an online betting site that uses points from rewards programs instead of real money.

By purchasing a stake in Snipp, Bally’s will now be able to expand beyond states with legal real money iGaming. Gambit Rewards does not use cash, so it is able to avoid many restrictions other gambling sites face. Bally’s purchased 25 million common shares of Snipp Interactive for $5 million total.