Last June, Bill C-28 became part of the law in Canada which legalize single-game sports wagering. This is a momentous occasion for Canada as before, Canadian gamblers could only do parlay-style sports bets. The passing of C-218 is now making sportsbooks and sports betting software companies scrambling to enter/expand into the Canadian gambling market. Thus, Penn National Acquiring theScore is the latest gambling operator moving to increase their shares of the Canadion market.
According to Bookie Pay Per Head Blogs, the acquisition of TheScore came at a $2 billion price tags. The announcement about the deal comes strategically right after the recent legalization of single-sports betting in Canada.
At the moment, single-sports betting is not officially available as each province must roll-out their own plan. However, it is not stopping companies from planning ahead as a sports betting gold rush is taking place in Canada. Needless to say, everyone in the sports gaming industry from Bookie Pay Per Head Services to sportsbook operators wants in!
For example, earlier this week, Ontario made a release of the first draft of its guidelines for single-game betting. Gambling analyst expects Ontario to offer it and should be available by the time football season begins. In addition, earlier this week, the Canadian Football League (CFL) made a multiyear partnership with BetRegal.
Penn National Acquiring TheScore is Part of their Gambling Expansion Plan
Penn National Gaming is a U.S. sportsbook and casino operator in Pennsylvania with 44 facilities in the U.S. and Canada. They are mostly known for operating the Hollywood Casino brand and for their stake in Barstool Sports. Penn National Gaming intends to be operating gambling facilities in 10 states by the end of the year.
For its part, Jay Snowden, the CEO and President of Penn National is very happy about this acquisition. This is because TheScore is the “number one sports app in Canada” and the third most popular in North America. Therefore, they expect TheScore to become a powerful tool to reach potential clients for their sportsbook, Barstool Sports.
This latest deal will give Penn State a larger reach in the entire North American gambling market. Furthermore, it will save them in the third-party gambling platform cost and give them a broader range of services.
The acquisition of TheScore was a unanimous decision the board of director of Penn National and Score Media and Gaming. Upon its completion, Penn National will hold 93% of TheScore while TheScore shareholders will hold 7%. In addition, Penn National paid half of it in cash and the other haf in stock options.