Snipp Enters into Acquisition Agreement for Gambit Rewards
Platform-as-a-Service (PaaS) company Snipp announced that it agreed to acquire Gambit, the leading consumer network pioneer in integrating loyalty programs with sports betting and online gaming in the US.
Snipp Agrees to Acquire Gambit Rewards for $5M
The acquisition of Gambit includes its wholly-owned subsidiary, Gambit Rewards. Launched in 2019, the company’s unique loyalty program allows turning loyalty points into free-to-play tokens. Those tokens can be used by Gambit players who have a chance of winning cryptocurrencies, charity contributions, and cash without risking their money.
The tokens, known as Gambit Play Tokens can also be used for live sports betting, online gaming, and a continuously growing variety of incentives. Gambit projects that there are approximately $100 billion in unused loyalty points in the US market. This provides leading brands with a unique opportunity to engage with fans while the popularity of online gaming and sports betting continues to grow.
The acquisition is with a price tag of $5 million. Snipp explained that $0.3 million will be paid in cash, while the remaining $4.7 million will be paid in common shares of Snipp to security holders of Gambit. It is important to mention that the acquisition is subject to regulatory approvals, as well as customary closing conditions.
The Acquisition Is Going to Bring Benefits on Multiple Levels
Gambit’s CEO, Richard Pistilli outlined that the company is thrilled to team up with Snipp. According to him, the acquisition is going to further accelerate Gambit’s plans for expansion and contribute towards its goal of making loyalty points fun again. Pistilli explained that playing for free with a chance to win cash is much better than redeeming points for a shopping promotion or a free coffee.
“We are thrilled to join the Snipp family and accelerate our expansion plans.”
Richard Pistilli, CEO at Gambit
He added that thanks to Gambit Rewards, players have the unique opportunity to experience the thrill and excitement from betting on live sporting events and other games without the risk of wagering real money. Pistilli acknowledged that Gambit’s unique platform is currently available in 48 states and can be accessed only by free entries, which are packaged as “gift cards and distributed through our rewards partners.” In conclusion, he outlined that consumers that place wagers by using their loyalty points can choose to collect their winning in cash.
“This strategic acquisition benefits us at multiple levels.”
Atul Sabharwal, CEO and founder at Snipp
Snipp’s CEO and founder, Atul Sabharwal, deemed the acquisition as strategic and said that it will bring benefits on multiple levels. He added that thanks to the acquisition, Snipp can “immediately offer our clients a truly unique experience that taps into the online gaming and sports betting super trend.” According to Sabharwal, the acquisition enables future revenue streams while at the same time helping Snipp to expand. In conclusion, he acknowledged that Gambit’s operating structure minimizes the risk for Snipp and creates “potential to deliver meaningful shareholder value.”
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