Saturday, May 1, 2021

SCR:TSX Gambling App Ready To Start Its move up

 

Single-event betting is heading for home

‘Arguments for resisting the bill aren’t great,’ Canadian senator says

GETTY IMAGES FILE PHOTO

Major League Baseball commissioner Rob Manfred was speaking Wednesday during an online sports business summit when sports wagering popped up in the conversation. “We have moved with the NBA, the PGA Tour and the NHL on these sports betting issues,” said Manfred, appearing on SporticoLive’s MLB Valuations event. “The biggest issue is that sports betting is a massive opportunity for fan engagement.”

Paul Beeston, former president of the Blue Jays and MLB, wasn’t quite as enthusiastic about the prospect of legalized sports wagering when he appeared in front of the Standing Senate Committee on Legal and Constitutional Affairs before Game 1 of the 2012 World Series.

“If large numbers of our fans come to regard baseball only or even partially as a gambling vehicle, the very nature of the sport will be altered and harmed,” said Beeston, expressing MLB’s opposition to amending the Criminal Code and allowing single-event betting by passing Bill C-290.

“We want fans to root for the home team to win. Likewise, we want our athletes to know that they are being cheered to win.”

Three years after Beeston’s visit to Ottawa, Bill C-290 died in the Senate when a federal election was called. In 2016, New Democrat MP Brian Masse saw his private member’s bill voted down in the House of Commons.

But times change, as is reflected by the contradictory opinions of two of baseball’s leading men over the past two decades. It’s why, barring the call of a federal election this spring, proponents of legal sports wagering believe a third time will be the charm with the Safe and Regulated Sports Betting Act (Bill C-218) getting overwhelming approval in the House of Commons and en route to the Senate for final approval.

“It’s a very different environment,” said Paul Burns, president and CEO of the Canadian Gaming Association.

“There’s more stakeholder support (today).”

That’s seconded by Kevin Waugh, the Conservative MP and former sports broadcaster from Saskatoon who introduced Bill C-218 as a private member’s bill. “Provincial and municipal governments want this bill passed, industry groups want this bill passed, advocacy groups want this bill passed, but most importantly Canadians want this bill passed,” Waugh said.

All that support has the value of a winning lottery ticket lost in a paper shredder if the bill doesn’t meet with the approval of the 105-member Senate. Waugh has asked David Wells, the Conservative senator from Newfoundland and Labrador (not the retired Blue Jays lefthander), to sponsor Bill C-218 in the Senate.

Brent Cotter, an independent representative who was sworn into the Senate just over a year ago, will second the bill and support it as a member of the same standing committee that Beeston addressed in the fall of 2012. In a best-case scenario for the bill’s proponents, the Senate will pass it late next month or in early June.

“The arguments for resisting the bill aren’t great,” said Cotter, a former deputy minister of justice and deputy attorney general in Saskatchewan who played lead for Alan Darragh’s Nova Scotia curling rink at the 1981 Labatt Brier in Halifax.

“There’s so much money involved in professional sports now, and having something exposed to sunlight is better than it not being exposed. We have a better sense of problem gambling. (Legal) entities are expected to address this issue ... organized crime doesn’t have a problem gamblers division.”

The former College of Law dean at the University of Saskatchewan is more than familiar with the Canadian gaming landscape. He was deputy attorney general in the 1990s when the province introduced gaming and casinos. And, as the law school dean, Cotter was lobbied regularly by students to introduce a course in sports and the law.

“When I stepped down as dean, I stayed on as a professor and put together a course,” he said. “Every second year a student would bring a proposal on sports betting, so for the past decade I’ve kept up to date on that world largely by supervising research on those papers.”

Thursday, April 29, 2021

Is theScore (TSX:SCR) Stock a Buy?



 Score Media and Gaming (TSX:SCR)(NASDAQ:SCR) shares have soared by more than 400% in the past six months. Domestic prospects for sports betting legalization have been a key driver in Score Media’s stock rally. In addition, its U.S. betting app, theScore Bet, has exceeded analysts’ expectations. Is the stock a buy? Let’s analyze this company in further detail.

theScore closed U.S. IPO

Canadian company Score Media and Gaming, popularly known as theScore, provides digital media and sports betting products. The flagship media application, “theScore” is known for providing information on team, league and player betting, live scores, news, and statistics.

The company announced the closing of its initial public offering in the United States on Monday. A total of 6.9 million Class A shares were sold by the company, including 900,000 Class A shares following the full exercise by the underwriters of their over-allotment option, at a price of US$27 per share for gross product to the company of US$186.3 million.

Class A shares have started trading on the Nasdaq Global Select Market under the symbol “SCR” on February 25, 2021. They continue to trade on the Toronto Stock Exchange under the symbol “SCR.”

Q1 results were sensational

Among multisport news and data apps, theScore Bet app was the third most downloaded in North America and the most downloaded in Canada for the 12-month period ended November 2020. theScore betting application is now available in New Jersey, Colorado, Indiana, and Iowa. In addition, the company creates and distributes its own digital content.

theScore’s first-quarter results for its 2021 fiscal year were sensational. The company reported nearly four million monthly active users for the quarter. Each user opened theScore Bet app 116 times per month on average. That’s impressive. For context, theScore released its biggest quarterly numbers at a time when there was no regular season of NBA or NHL games.

The company reported revenue of $16 million for the 12 months ended November 30, 2020.

Along with record revenues, the company has also launched theScore Bet app in Colorado and Indiana and plans to launch it in other states, with Iowa next on the list once regulatory approval is obtained.

In the first quarter, the company’s gaming grip in Canadian jurisdictions where theScore received regulatory approval, increased 535% year over year to $55.8 million. The focus will be on what’s happening in the United States, but the legalization of single-game sports betting means a lot to the leading sports betting brand in Canada.

The company has a less-advertised esports business. Esports is a potential source of long-term growth, especially as 5G internet becomes more popular. The company’s esports app has seen more than 350 million video views, its highest for the first quarter in the company’s history. This number represents an increase of 355% year over year. It’s not just a source of income; it’s a way to grow the business audience and mobile users.

Media revenue for the quarter was $10.6 million. This is a record for the company. The growth was driven by direct advertising and is a consequence of the retention of the company. The company has increased its followers across all of its social media platforms.

While growth was excellent in the first quarter, theScore reported a net loss of $12.6 million.

theScore stock is a buy

Growth prospects are very good for 2021 and even better for 2022. Indeed, revenue growth of 71.7% and 79.1% are expected for 2021 and 2022, respectively. If we look at profits, they are expected to increase by 15.5% and 46.2%, respectively, for 2022.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Stephanie Bedard-Chateauneuf has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla.

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