SPORT (without an "s") security tokens are completely different from SPORTS (with an "s") utility tokens, and the two should never be confused with each other. The security token, SPORT, is a registered security instrument with the SEC for investors to invest into ZenSports and receive potential investment returns (beyond traditional stock, which the company offers as well). The sale of SPORT security tokens was completed in January 2019 via a Security Token Offering (STO) and is no longer open to investors. SPORT is not integrated into the ZenSports app in any way, shape or form. No deposits, bets, withdrawals, or rewards can take place in-app using SPORT.
SPORTS, on the other hand, is a true utility token on a fully functional application and active network. SPORTS has not, nor ever will be sold to investors during an STO, ICO, as an investment, or for the purpose of raising funding for ZenSports.
Currently, SPORTS are used as a mechanism for betting and earning rewards through the ZenSports app and network, but we will be expanding the network that SPORTS can be used in soon by partnering with other companies in the sports, entertainment, and media industries. Think of being able to go and buy your favorite player's jersey, or getting tickets to a game, or paying for a pay-per-view event using SPORTS tokens.
ZenSports has a 50% rollover requirement of any SPORTS utility tokens deposited directly or purchased through our Exchange. This means you must wager at least 50% of the SPORTS utility tokens deposited directly or purchased through our Exchange on actual sports bets within our app prior to making a withdrawal or selling your tokens through our Exchange (wash betting to meet the 50% rollover is strictly prohibited). This requirement can not be waived under any circumstances, as it's a legal requirement that ZenSports needs to enforce in order to keep SPORTS a utility token.
ZenSports has received an in-depth legal opinion from a leading U.S.-based law firm that SPORTS is indeed a utility token under the definitions and guidelines of the SEC. The legal opinion highlights the functional utility applications of our SPORTS token, how it is actually used by customers within an existing network for betting and rewards purposes, and is not a means of generating investment returns for customers.
The complete copy of the legal opinion is available for review by interested parties that the ZenSports management team determines should be granted access to it. To request a copy of this legal opinion, please submit an email request to [email protected].