While a lot of businesses are hurting thanks to the ongoing COVID-19 pandemic, sports betting continues to be the exception to that rule. In fact, theScore’s sports betting/streaming stock price (Score Media and Gaming Inc.) has increased upwards of 500 percent from 2020, and is poised to go up even more in the coming months.
Of course, a lot of that has to do with their sports betting launch in 2019, but also due to the possibility of legalized sports betting coming to Canada, where theScore calls home.
Why is theScore’s Stock Price Increasing so Quickly?
If Canada can legalize single wager betting later this year, which looks likely, it would give theScore a wide-open market in their own backyard, which they would have no problem capitalizing on. Furthermore, with the aggressive new advertising strategies betting apps are using to bring in new customers, the company stands an amazing chance of becoming one of the premiere sports apps in the world.
The app already averages around 3.9 million users a month, but that number would likely double if Canada were to legalize single wager betting. One prediction even has theScore app making a whooping total of between 3.8 and 5.3 billion dollars in gross revenue if single wager gambling becomes legal in Canada. That’s a lot of money and could even help the company dig out of the red caused by US acquisition efforts.
“I think when we look at the two markets (US and Canada), we look at the dramatic differences in terms of our reach and our brand recognition, and look – everybody in Canada knows theScore,” John Levy said. “Everybody who’s on mobile apps uses theScore. If you add up (Canadian sports media outlets) TSN, Sportsnet, anybody else, they don’t even come close to us.”
Keep in mind that this is a company that ended their last quarter with $10.6 million (CAD) in total revenue. The report was a quarterly record for the company and had a lot to do with them going live with sports betting in Colorado and Indiana. This, along with the pandemic forcing millions of people to stay home, created a sort of boom period for gambling and the app.
Despite this ongoing boom period, the company remains $235,565 in the red when it comes to gross gaming loss. That number quickly becomes $1.6 million if you consider the free bet, bonuses and unsettled bets that the company is utilizing. Now, a lot of this has to do with the company putting a lot of stock in to sign up promotions, and opening two new facilities, but the possibility is there for deep growth.
Single Game Sports Betting in Canada Could Blow the Roof off Stock Price
According to SeekingAlpha.com” With Bill C-13 back on the table on January 25 in the House of Commons and the potential for a US up-listing, we believe that Score Media and Gaming has at least a 25 percent upside to the current share price. Sports Gambling legalization has been a growing trend in North America and Score Media and Gaming looks poised to capitalize on this.”
If nothing else, this is an app with a lot of upside to it. Furthermore, if Canada does manage to legalize singe game sports betting, it would present theScore with a wide-open market for them to capitalize on. Some are even mentioning that the app should include wagering for Esports, which could be yet another great upside for the flourishing company.
Although Esports betting is still in its early stages, theScore adding that feature to their Canadian and American market would be a huge revenue driver. Keep in mind that Esports is another market that is thriving right now, which means theScore needs to capitalize on it to stay competitive. It’s honestly just the next logical step in the evolution of this app and would really open them up to a younger audience.
In the end, there aren’t a lot of certainties in today’s world. A lot of small businesses are going belly up and bigger companies are doing everything they can to prevent it from happening themselves. With that in mind and how much theScore app is thriving during this unknown period, it should come as no surprise that they are on the verge of becoming one of the world’s next big sports app.