The fiscal year-end results are in for Score Media and Gaming Inc. So what will the future bring for the Canadian-based publicly traded company? It could mean single-game betting in its native land and a listing on a US stock exchange.
Founder and CEO John Levy stated that his Canadian company is in “pole position” to be the top sports betting company in Canada. Here’s why: for the quarter ending on November 20th, the company saw CAD 10.6 million (US 8.3 million) in total revenue – quarter record and 15.2% better than the CAD 9.2 million (US $7.2 million) reported in Q1.
TheScore Bet was launched as the company’s online sports betting app, in Colorado and Indiana. As a result, the company reported a record CAD 55.8 million (US $43.8 million) handle for the quarter, or a whopping 535% jump from the same quarter in 2020.
Elsewhere, the company also reported a gross gaming loss of CAD 300,000 (US $235,565). Atter factoring in free bets, bonuses, and fair value on unsettled bets, the net loss reaches CAD 2 million (US $1.6 million).
This loss can be attributed to player promotion specials and the Indiana and Colorado openings like a 5% cashback offer over a 60-day period after the customer’s first bet. Of note, the promo was capped at $2,500 whether the bets won or lost.
Per Levy, compensating for losses entails rolling out the app in additional states. It may take a while.
“We’re continuing to build; momentum is working in our favor. I don’t think
I can be any more specific, but we’re starting to see encouraging … in the
states that exist, and hopefully in the new states that come on board.”
Iowa could well be next pending regulatory approval. Like Indiana, Iowa is one of eleven states where theScore has access through a deal with Penn National Gaming.
Even more appealing is the possibility of lifting the ban on single-game wagering in Canada. It would greatly expand sports betting in the country, as now only parlay betting is legal.
Score Media is ready with its sports betting app already tied to its sports media app. Executives think they will have an advantage in the Great White North similar to FanDuel and DraftKings in US states.
O course there are dramatic differences in these markets in terms of reach and brand recognition. Yet everybody in Canada knows theScore per John Levy.
“Everybody on mobile apps uses theScore. If you add up (Canadian sports
media outlets) TSN, Sportsnet, anybody else, they don’t even come close to us.”
It is impressive that the sports media app averages 3.9 million monthly users at 116 times per month per user. The potential here is enormous as the annual gross revenue for Canadian online gaming between US $3.8 billion and US $5.4 billion.
Meanwhile, in the UA, at least 50% theScore Bet users are also using their sports media app. Thus, they can place wagers on games that increases in-game betting.
Making the company that much more attractive, Score Media recently closed on an equity deal totaling CAD 46 million (US $36.1 million) for nearly 32.9 million shares of stock. Levy has much to say on the future.
“The potential benefits for theScore and our investor base may include a significantly larger pool of capital, greater average daily trading volume, exposure to a larger number of US retail and institutional investors, and a potential increase in market valuation.”
Levy wants Score Media’s board to initiate a stock consolidation as the move would be in conjunction with a potential US exchange listing.