FinancialBuzz.com News Commentary
NEW YORK, April 20, 2022 /PRNewswire/ -- The shift to a more favorable attitude towards online gambling services is visible across the board. According to data published AGC, nearly 7 in 10 (69%) Americans say that gaming provides a positive benefit to the U.S. economy and 63% agree that the industry provides high-quality jobs. Moving forward, as the legal infrastructure continues to become friendlier towards online gambling and sports betting in particular, the trend of partnerships with various leagues and teams across the country is expected to accelerate. As a result of these recent developments, the sports betting market has significantly grown in popularity over the last couple of years, igniting a series of mergers and acquisitions in the industry. For example, last summer, DraftKings agreed to acquire Golden Nugget Online Gaming for USD 1.56 Billion in stock. Golden Nugget Online shareholders received 0.365 shares of DraftKings stock, according to a report by CNBC. Snipp Interactive Inc. (OTC: SNIPF) (TSX-V: SPN), Bally's Corporation (NYSE: BALY), DraftKings Inc. (NASDAQ: DKNG), MGM Resorts International (NYSE: MGM), Caesars Entertainment, Inc. (NASDAQ: CZR)
As the sports betting market continues to grow in the United States, more and more companies are transitioning from the traditional gambling & casino business model to one that includes sports betting. As the result, investors from countries where sports betting is already a mature industry are getting more interested in the future prospects the U.S. has to offer. Last year, the Betfred Group, founded by U.K. brothers Fred and Peter Done, set up 10 companies in Nevada to operate in states including Louisiana, Ohio and South Dakota, where lawmakers took steps this year to permit sports betting, according to registry filings, Bloomberg reported.
Snipp Interactive Inc. (OTC: SNIPF) (TSX-V: SPN) announced last week breaking news that, "a subsidiary of Bally's Corporation ("Bally's") (NYSE: BALY) has signed an agreement to invest US $5,000,000 in Snipp (the "Investment"). As part of the Investment, Bally's will be entitled to nominate one director to Snipp's board of directors, 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. Completion of the Investment is subject to the approval of the TSX Venture Exchange ("TSXV") 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 25,000,000 common shares of Snipp at US $0.20 per share (CAD $0.25 per share)* as part of the Investment. * Bank of Canada closing FX Rate on April 11, 2022
Bally's and Snipp will also enter into commercial agreements (collectively, the "Commercial Arrangements") whereby Bally's will become Snipp's exclusive gaming partner for Snipp's loyalty gaming platform ("Gambit"), recently acquired in connection with Snipp's February 22, 2022 acquisition of Gambit Rewards, Inc.
As part of the Commercial Arrangements, 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. Work will 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 US$10,000,000.
'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. 'Our acquisition of Gambit was intended as a way to better align ourselves with the Gaming world. 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.'
'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…"
Bally's Corporation (NYSE: BALY) announced last year that it has been awarded one of nine licenses to conduct online sports betting in the State of New York. With New York's major professional sports franchises consisting of some of the most storied teams in all of sports, as well as a diverse base of devoted sports fans, this license provides Bally's with significant opportunities to showcase its best-in-class sports betting platform and augment its player database. Soo Kim, Chairman of Bally's Corporation's Board of Directors, said, "Bally's is pleased to have been awarded an online sports betting license from the State of New York -- the most populous state to enable OSB -- and would like to thank the New York State Gaming Commission for including Bally's in this exciting endeavor. This license advances our overall market footprint and marks the latest milestone on our journey towards becoming the leading omni-channel gaming provider in the U.S. Above all, we look forward to providing New York's devoted fan base with engaging, best-in-class, sports betting experiences."
DraftKings Inc. (NASDAQ: DKNG) and the Mashantucket Pequot Tribal Nation announced on April 4th, an agreement to a deal to expand their relationship and pave the way to offering the DraftKings online and retail sports betting experience in Puerto Rico, subject to applicable licenses and regulatory approvals being obtained. The announcement comes following Foxwoods and DraftKings having successfully launched sports betting and iGaming in Connecticut on October 19, 2021. "Since establishing our relationship with the Mashantucket Pequot Tribal Nation and Foxwoods more than a year ago, we've seen immense success, which can be attributed to the collaborative efforts between the organizations and shared vision for providing customers with the very best," said Matt Kalish, President of DraftKings North America and co-founder. "Puerto Rico is known for its rich and vibrant sports culture, and we look forward to being able to provide fans with a safe and legal form of sports betting through our retail and online sportsbooks."
MGM Resorts International (NYSE: MGM) announced on March 31st, that it has given The International Center for Responsible Gaming (ICRG) a $250,000 grant in support of the organization's research and education on gambling disorder and responsible gambling. "As one of our original donors, MGM Resorts International has literally helped create the field of study on gambling addiction and responsible gambling," said ICRG President Arthur Paikowsky. "We are deeply grateful for their continuing support of efforts to effectively prevent and treat gambling disorder."
Caesars Entertainment, Inc. (NASDAQ: CZR) and the New York Mets announced on April 6th, a multi-year partnership to make Caesars Sportsbook an Official Sports Betting Partner of the team. In addition to a variety of VIP experiences and hospitality assets for members of the industry-leading loyalty program, Caesars Rewards, this partnership features plans to open a new sportsbook lounge at Citi Field, Caesars Sportsbook at the Metro Grille. "New York is a key state for us following the successful launch of our Caesars Sportsbook app in January," said Chris Holdren, Co-President of Caesars Digital. "The Mets' fanbase is one of the most loyal in baseball and this partnership offers us the chance to treat those passionate fans like Caesars. We look forward to opening our space at Citi Field during an exciting time for the franchise."
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