Toronto-based media and sports-betting outfit Score Media and Gaming — more commonly known as theScore — saw its stock price explode this past Thursday after agreeing to be acquired by Pennsylvania-based casino operator Penn National Gaming for US$2 billion., theScore’s upside is likely limited at this point. But the rapidly expanding sports-betting space is home to a number of companies with plenty of room to grow.
With the acquisition of theScore, Penn looks far more enticing than its 2021 stock performance would indicate.Article contentin early March, they’ve steadily declined to US$71.84 earlier this week. But its long-term growth prospects are intriguing. Its multiple gaming and horse-racing properties should provide more value once customers feel fully comfortable returning to them. Moreover, the company’s 36 per cent stake in digital media company Barstool Sports — 66 million monthly users and counting — exposes Penn to Barstool’s multiple revenue streams, including sports betting pay-per-view events and advertising.
And then there’s Penn’s acquisition of theScore, which, according to a joint press release from the two companies, will create “North America’s leading digital sports content, gaming and technology company.”Article contentDraftKings is one of America’s largest fantasy sports and sports-betting operators, putting it in a prime position to capitalize on the rising popularity of online wagering.for DK’s stock, which hit all-time highs of US$74 in March only to get walloped in the months since.
The added exposure appears to be paying off. DraftKings posted revenue of US$312 million in the first quarter of 2021, a year-over-year increase of 253 per cent, according to the company’s