Penn National is making big news in the sports betting industry again, this time agreeing to purchase theScore. theScore is a product of Score Media and Gaming, and it works in the sports betting and technology industries.
The total cost of the purchase is near $2 billion, and it is a combination of both cash and stocks. Both companies have already approved this deal with their respective board of directors, and it is expected to close during the first quarter of 2022.
According to the announcement, theScore will remain a standalone company, and it will continue to be headquartered in Toronto, Canada. Canada is set to launch single-game sports wagering soon, and theScore is expected to be a leader in that country.
Penn National has continued to put up impressive numbers throughout the US, and the company announced that it already has the funds to complete the purchase. Penn CEO Jay Snowden stated, “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.”
Penn National Wants Technology
Since Penn National is going to allow theScore to continue offering sports betting, it is clear that this deal was made for the technology. With this new deal, Penn National won’t have to partner with other technology companies, and it can control the updates and the product that is being offered.
Even though the cost of this acquisition is steep, Penn National will be able to save money by not having to partner with third parties. According to the announcement, theScore will soon have its own risk and trading department, allowing Penn National to set its own odds and lines.
Barstool to Become a Huge Presence
When Penn National acquired Barstool Sports back in January 2020, it sent shockwaves throughout the US sports betting and entertainment industry. That acquisition allowed Penn National to break into the sports betting industry with the Barstool Sportsbook, and it has become popular in a few markets.
The Barstool Sportsbook is currently live in four different states, but this new deal could give Penn National the strength it needs to move forward with this venture. Penn National will now have access to even more states, and it will likely use the Barstool name in those states.
Following a Precedent
The sports betting industry has largely been shaped by massive deals, such as this one, taking place since the federal ban was lifted in 2018. Larger companies are continuously looking for new assets as they attempt to take control of this growing and thriving industry.
Caesars Entertainment agreed to purchase William Hill earlier this year in a deal that was similar to this one. That could have massive impacts on the US sports betting industry, and those effects started to take shape this week.
The William Hill Sportsbook has been rebranded to Caesars Sportsbook in eight different states throughout the US. There will be other states affected in the coming months, and it could turn Caesars into a sports betting giant in 2022 and beyond.