Penn National Gaming is set to acquire theScore in a cash-and-stock deal worth $2 billion.
According to Jay Snowden, the company’s chief executive officer, the entire range of Penn National betting products will migrate to a platform currently under development by theScore.
TheScore is a sports betting platform whose app enables players to place bets on sporting events in New Jersey, Colorado, Indiana, and Iowa.
An Important Move for Both Sides
Penn National will pay $17 in cash and 0.2398 shares of its stock for every theScore share. That means theScore’s shareholders will own around 7% of the new business entity. Penn National’s current shareholders will control the remaining 93%.
The deal will be completed in the first quarter of next year.
Speaking about the transaction, Snowden said theScore would complement Penn National’s current lineup of online gaming and betting products. He pointed out the operator would be positioned to offer its customers a powerful selection of content.
The new online casino and mobile sports betting offering will deliver lots of opportunities to customers, from personalized content to real-time scores and stats. Penn National is hoping the platform will have a leading engagement and retention.
Since Barstool sportsbook currently uses Kambi’s platform, the latest move will enable Penn National to have its entire range of products under a single in-house developed platform. That way, the operator can cut costs and further expand its offering. More growth opportunities should come from theScore’s products and user analytics. However, the platform provided by theScore hasn’t been made available yet, so Barstool will continue to use Kambi’s one until the current partnership deal ends.
Snowden is looking forward to delivering best-in-class products, which should extend the platform’s reach and further bolster its market presence.
Sharing Goals and Visions
On the other hand, John Levy, Chairman and CEO at theScore, pointed out the two companies had a shared vision on how media and gaming intersect. He also added they were excited to become part of Penn Gaming to create the most powerful gaming and media business on the continent.
Levy explained that theScore had built a company led by innovation and technology, which allowed it to succeed in markets across North America. With the support of such a reputable name like Penn National, theScore is sure to increase its presence and further grow. Levy will continue to lead theScore as part of the new business.
TheScore and Penn National Gaming have been working together since 2019. Their strategic partnership helped both sides to grow their business. The operator’s executive Snowden was a key figure in building a successful online gaming platform with Barstool Sports.
The Canadian side is confident its experience in creating proprietary technology and sports media will help Penn National position as a leader in the market.
TheScore ended the third quarter of the last fiscal year with negative gross gaming revenue. The company generated only $76,500 in revenue in the second quarter of 2021.