In a move that will reshape the gaming industry, Penn National Gaming, Inc. announced its acquisition of theScore for approximately $2 billion in cash and stock today.
Penn’s purchase of theScore allows the company to leverage its sportsbook and gaming technology and better manage product development while reducing costs. With Canadian-based theScore in tow, Penn can eliminate fees they currently pay to third-party gaming technology and service providers.
“We are thrilled to be acquiring theScore, which is the number one sports app in Canada and the third most popular sports app in all of North America,” said Jay Snowden, President and CEO of Penn National. He continued by saying that, “theScore’s unique media platform and modern, state-of-the art technology is a powerful complement to the reach of Barstool Sports and its popular personalities and content.”
In addition to gaining unfettered access to theScore sportsbook platform, Penn acquires several valuable assets that theScore has developed for the industry, including their player account management system and an emerging in-house managed risk and trading service platform. TheScore Bet online sportsbook is currently operational in parts of Canada, Colorado, Indiana, Iowa, and New Jersey.
As we have reported on Gaming Today previously, theScore has built a strategy to maintain as much control as they can over their sportsbook and content efforts. As a result, theScore is uniquely positioned in the industry as a sportsbook that can almost “do it all.” As Christopher Gerlacher reported here earlier, “theScore differentiates itself by offering sports news and a sportsbook together. That allows bettors to read sports content, betting tips, and game lines in the same digital ecosystem.” That versatility now rests within the larger, powerful gaming giant of Penn National.
Penn National is based in Wyomissing, Pennsylvania, and currently operates 44 casinos, gaming, or racetrack facilities in the United States and Canada. They brand many of their ventures under the Hollywood Casino name, and the acquisition of theScore will give Penn a sportsbook app and content delivery system of their own.
Acquisition Cements Good Relationship Between Two Companies
Penn and theScore have been in a strategic alliance since 2019, working on the Barstool Sports brand and other mutual projects. In 2020, Penn purchased a 36% stake in Barstool Sports and has helped that company expand in the gaming industry. Penn’s purchase of theScore signals the consummation of a working relationship between the two that has seen both companies merge their interests.
“This deal brings together two companies that share a vision for how media and gaming intersect, and we could not be more excited to join the Penn National family,” Chairman and CEO of theScore John Levy said in a prepared release.
Shareholders Stake Will Increase In Value
According to financial analysis, shareholders of theScore will receive $17 in cash and 0.2398 shares of Penn National common stock for each share of theScore they own. Both boards, for Penn and theScore, have unanimously approved the sale, which is anticipated to officially close in the first quarter of 2022. At the completion of the deal, Penn National and theScore shareholders will hold approximately 93% and 7% respectively, of Penn’s outstanding shares. Penn National indicates that they will fund the $1 billion cash portion of the purchase with cash.