People love to bet on sports: theScore CEO on Bill C-218 approval
As Score Media and Gaming Inc. continues its push into U.S. markets, the company’s chief executive officer isn’t losing sight of his home market.
“Ontario, when it opens up, will be equivalent to the fifth-largest U.S. state,” said Score Media CEO John Levy in a broadcast interview.
“While we’re all jonesing for New York, Florida and Texas, all the big states, right in our home turf is going to be one of the biggest sports betting jurisdictions in North America."
The Toronto-based media company has been pushing into the single event sports betting market in several U.S. states as it awaits for legislation to pass for it to open in Canada. Bill C-218, a private member's bill that amended Canada's criminal code on gambling for single sports games, passed through the Senate and was given royal assent last month.
Score Media is currently accepting bets in four U.S. states and is leveraging its popular sports news app to find new gambling markets to enter.
“The recognition of our brand is ahead of our competition,” said Levy. “People have been using our app in the states and Canada for the last ten years.”
Levy's comments come on the heels after Score Media's shares fell by nearly 10 per cent on Wednesday after the company revealed higher-than-expected expenses in its third-quarter results. That contributed to an earnings with interest, taxes, depreciation, and amortization (EBITDA) loss of $21.1 million, below what analysts had been expecting.
Score Media's media division generated $8.9 million in revenue, up from $2.4 million a year earlier and a quarterly record for the company, said Levy. Sales in its media business surged in the quarter following a year when most professional sports were brought to a standstill due to the COVID-19 pandemic.
While Score Media's betting business isn’t collecting any revenue in Canada yet, its TSX-listed shares are up more than 175 per cent in the past year.