theScore announces US IPO plans in time for Canada sports betting expansion

The Canadian sports media company turned US sportsbook operator theScore Media and Gaming, has announced plans to go public on the Nasdaq exchange.

The Toronto-based business announced its US initial public offering (IPO) on Monday. This comes after the company’s board of directors and shareholders voted in favour of continuing with a dual listing in the US and Canada.

The first indication that the company planned to go public in the US came in January this year when a quarterly earning call revealed that handle was up 535% year-over-year to $55.8 million the first quarter.

TheScore currently trades on the Toronto Stock Exchange and as of closing on Monday shares were priced at $38.58CAD. Since November, the stock has seen more than 450% in growth.

Going public on the Nasdaq

The operator plans to offer 5m Class A Subordinate Voting Shares for sale through the IPO. A syndicate of underwriters led by Morgan Stanley, Credit Suisse, Canaccord Genuity and Macquarie Capital will serve as joint book-running managers.

The IPO remains subject to theScore agreeing a satisfactory underwriting agreement with this group of book-running managers and will also outline customary closing conditions.

Once an agreement has been reached, the pricing of the offering as well as the expected proceeds will be announced.

Part of this will see theScore grant the underwriters an over-allotment option of up to 15% of the Class A shares sold through the offering

The Canadian business is expected to begin trading on the Nasdaq under the ticker symbol “SCR” once the offer has been priced. Class A shares will continue trading on the Toronto Stock Exchange under the same symbol.

Funds raised from the offering will be put towards working capital and other general corporate purposes. This will include the expansion of sports betting product, theScore Bet, in the US market.

TheScore in the US

At the time of writing, theScore’s sports betting product is currently live in four US states – New Jersey, Indiana, Iowa and Colorado.

The operator’s sports betting product is powered by its technology partner Bet.Works which was acquired by Bally’s Corporation in November 2020.

The operator also plans to launch its product across the Canadian provinces once the market goes live. TheScore estimates that the Canadian market has the potential to generate up to $5.4bn in annual gross gaming revenue.

In a statement on the legalisation of single event betting in Canada, theScore’s founder and CEO John Levy said: “As Canada’s leading mobile sports media brand with a uniquely integrated sports betting platform, we look forward to collaborating with key stakeholders as the legislative process continues, to ensure that betting reform works for all Canadians and their communities.”

Sports betting in Canada

Single event sports betting in Canada is one step closer to becoming a reality after Canadian Parliament passed the second reading of Bill C-218, the Safe and Regulated Sports Betting Act, last week. 

Canada’s parliament passed the second reading of the bill with 303 votes for and 15 against.

The bill will now enter the last phase of hearings with the Standing Committee on Justice and Human Rights before moving to the senate and then to Governor-General for Royal Assent.