Arsenal Football Club has struck a sponsorship deal with CashBet to promote the US gaming firm’s initial public offering (ICO), it has been reported.
Under the terms of the agreement, which marks the first time a major football club has endorsed a cryptocurrency-related project, the English Premier League club will promote CashBet’s ICO at its Emirates stadium. The financial terms of the deal haven’t been disclosed.
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“We are pleased to welcome CashBet Coin as our partner. We are looking forward to working with CashBet Coin as they launch their new cryptocurrency,” Arsenal’s chief commercial officer, Vinai Venkatesham, said yesterday, as quoted by Guardian.
CashBet is a California-based online gaming business founded in 2012. The company aims to raise between $40 million (£28 million) and $70 million from the issuance of CashBet Coins – crypto tokens that users will be able to use to bet on CashBet’s various online games. The ICO’s pre-sale phase launched yesterday, while a public sale is scheduled to start on March 20.
The partnership with Arsenal comes at a time when ICOs are facing increasing regulatory scrutiny in the UK. Last year, the Financial Conduct Authority (FCA) issued a consumer warning about the potential risks associated with digital token sales, including the lack of regulation and protection for investors, the high price volatility associated with digital tokens and the potential for fraud. The watchdog subsequently announced that it intended to perform a “deeper examination” of the funding model to determine whether a further regulatory action was needed.