For 52 years, Penn National Gaming focused almost exclusively on horse racing and casinos, but since 2020, it has made a hard push into sports betting.
On Thursday, the company announced that it is acquiring Score Media and Gaming, operator of theScore, for approximately $2 billion.
The move gives Penn an established sports betting and media presence in Canada, where single-event sports betting is expected to become legal by the end of the year.
Penn purchased a 36% stake in Barstool Sports in January 2020 at a $450 million valuation. The company will increase its stake in Barstool to 50% in 2023, when it will also have the option to purchase the rest of the sports media and betting enterprise.
- theScore’s sportsbook launched in 2019 and is available in Indiana, Iowa, Colorado, and New Jersey. Its score tracking and sports news app has over 4 million monthly users.
- Analysts predict theScore’s yearly revenue will reach $85 million in 2022.
theScore’s intellectual property is an equally valuable component in the transaction.
“Importantly, the transaction provides us with a path to full control of our own tech stack,” said Penn CEO Jay Snowden. “theScore has developed a state-of-the-art player account management system and is finalizing the development of an in-house managed risk and trading service platform.”
Score Media and Gaming’s stock was up over 76% following the announcement. Penn’s stock climbed 6%.
