Canadian media and sports betting company, Score Media and Gaming (OTC: TSCRD), better known as theScore, is planning a listing on a major exchange in the U.S.
What Happened: Score Media and Gaming is filing to list five million shares and go public on the Nasdaq with the ticker “SCR.” Shares of the company trade on the TSX in Canada and OTC in the U.S.
Net proceeds will be used from the IPO will be used as working capital and for the company’s continued growth expansion in the U.S. and Canada.
Why It’s Important: The listing from Score Media and Gaming in the U.S. comes as the company has a strong presence in the country already and is seen as a possible winner from the legalization of single-game sports betting in Canada.
“A key advantage to the listing will be increased brand visibility in the U.S., which in turn should lead to more exposure for the company’s media properties and sports betting products,” Roundhill Investment’s Matias Dorta told Benzinga.
Score Media and Gaming is a portfolio holding in the Roundhill Sports Betting & iGaming ETF (NYSE: BETZ).
“The combination of media powerhouse and sports betting product will continue to prove itself as very advantageous,” Dorta added.
Score Media and Gaming operates theScore Bet online sports betting app in the states of New Jersey, Colorado, Indiana and Iowa, and was the first media company to also become a sportsbook when it was launched in New Jersey.
The company has a deal in place with Penn National Gaming, Inc. (NASDAQ: PENN) granting Score Media and Gaming access to a possible 11 states over the next 20 years. The deal with Penn National includes upfront fees, additional payments for new state legalizations and a percentage of net gaming revenue.
Penn National took a 4.7% equity stake in Score Media and Gaming in 2019 as part of the deal.
Related Link: Why This Canadian Sports Media Stock Has A Lot Going For It
Canada Sports Betting: In Canada, Score Media and Gaming could have similar success that Penn National Gaming has seen by leveraging its strong media platform and following into sports betting.
Since Penn National Gaming purchased a 36% stake last year in sports media brand Barstool Sports, the acquisition has been considered a success for Penn National in growing its user base and launching its online sportsbook with minimal marketing costs.
“The biggest takeaway from the Penn x Barstool acquisition has been the ability to leverage Barstool’s organic content engine to drive meaningful activity to Barstool Sportsbook app,” Dorta said.
TheScore is a top 30,000 website that gets around 20% of its traffic from Canada, Dorta added. “I believe theScore can leverage their organic traffic from their website and social media channels and drive users to their sports betting product in Canada when it launches.”
Price Action: Shares of Score Media and Gaming were down 2% to $29.90 on Tuesday. Shares of the media and sports betting company are up over 400% in the last year.
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