Score Media and Gaming (SCR.TO) has filed for an initial public offering in the United States, the Toronto-based company said on Monday.
Commonly known as theScore, the company said it intends to list its shares on the Nasdaq under the symbol SCR. The stock will continue to trade on the Toronto Stock Exchange under the same ticker symbol.
theScore is best known for providing sports news and information through its mobile app, but has also made inroads to the American sports betting market through its ScoreBet platform. The company has launched ScoreBet in Colorado, New Jersey, Indiana and Iowa. So far, 24 U.S. states have passed legislation to reform their sports betting laws, following a 2018 decision by the Supreme Court allowing states to legalize gambling on individual sporting events.
Deloitte Canada notes strong growth trends in states that have passed such reforms. According to recent analysis, sports fans in New Jersey wagered US$931 million in November 2020, with 93.6 per cent of bets being placed through online or mobile betting. That figure represented a 15.9 per cent jump over the previous record, set in October, and established a new U.S. national record, Deloitte said.
In Canada, theScore has cheered the progress of federal legislation to legalize single sports betting. Last week, Bill C-218 passed a vote in the House of Commons and is set to be reviewed by the House of Commons’ Justice and Human Rights Committee this week. Deloitte estimates that within five years of legalization, Canadian sports betting could grow from $500 million to nearly $28 billion in legal-market wagering.
Monday’s announcement by theScore follows shareholder approval of a consolidation of its Toronto-listed shares earlier of this month, a move aimed at helping the company list on a U.S. stock exchange.
"We believe a U.S. listing would benefit our business and shareholders as we seek to further execute on the growing opportunity in the rapidly developing North American sports betting market,” John Levy, theScore’s chief executive officer said in a Feb. 11 news release.
theScore said 5,000,000 of its Class A shares will be offered for sale through a syndicate of underwriters led by Morgan Stanley, Credit Suisse, Canaccord Genuity and Macquarie Capital.
The company said the offering will be priced “in the context of the market with terms, including price per share, to be determined at the time of entering into an underwriting agreement with the underwriters.”
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.