SPORTS BETTING

Canada – Penn cleared to buy the Score

Penn National Gaming has been cleared by the Minister of Canadian Heritage under the Investment Canada Act to buy Score Media and Gaming.

The deal should be completed by October 19, 2021. It is subject to approval by theScore’s shareholders at a special meeting, receipt of a final order from the Supreme Court of British Columbia, and “satisfaction or waiver of the other conditions” contained in the arrangement agreement. Upon completion of the transaction, current Penn National and theScore shareholders will hold approximately 93 per cent and seven per cent respectively.

Penn National Gaming expects to create North America’s “leading digital sports content, gaming and technology company” by adding theScore’s modern technology and betting platform to the Barstool Sports audience, which the company acquired last year.

Penn National CEO Jay Snowden said: “We anticipate that the acquisition of the Score will provide adjusted EBITDA accretion by Year 2, an incremental $200m medium term adjusted EBITDA, and $500m of incremental long term adjusted EBITDA upside. Users will enjoy a unique mobile sports betting and iCasino platform with highly customized bets and enhanced in-gaming wagering opportunities, along with highly engaging, personalised sports and entertainment content, and real time scores and stats.We believe this powerful new flywheel will result in best-in-class engagement and retention.”