Update, March 1: Score Media and Gaming Inc. has closed theScore’s initial public offering on Nasdaq after it sold all Class A shares at $27 each, totaling $186.3m. The shares consisted of six million allocated for the IPO, revised from five million, and 900,000 shares in an over-allotment option.

A new source of funds

Canadian sports betting and media company theScore has filed for a US public offering of its shares on the Nasdaq. The company’s board of directors and shareholders approved the move earlier this month.

the company will offer a total of five million Class A Shares

theScore Bet owner announced the filing in a press release on Monday. The company will offer a total of five million Class A Shares, listed on the Nasdaq exchange under the ticker symbol SCR. theScore’s stock will also continue to trade on the Toronto Stock Exchange. Company shares closed at CA$38.58 (US$30.59) on Monday.

The company said it will use proceeds generated through the Nasdaq listing to fund its expansion in the US and Canadian sports betting markets. The move comes one week after the Canadian House of Commons approved a bill for the legalization of single-event sports betting.

Part of Levy’s long-term plan

Last September, theScore first transitioned its equity from the Toronto Venture Exchange to the Toronto Stock Exchange. This was the company’s first successful move to a major exchange, prompting CEO John Levy to push for a US listing as well.

Levy said a US listing would benefit both the business and its shareholders

While announcing the company’s 2021 Q1 fiscal year results in January, Levy said a US listing would benefit both the business and its shareholders. He said sales on the Nasdaq or New York Stock Exchange would allow the company to capitalize on the “rapidly developing North American sports betting market.”

In February, theScore’s board approved a reverse split of the company’s stock in which investors received one new share for every ten held, retaining the value for shareholders while increasing the price of the stock. This, in turn, increased theScore’s chances of a US listing.

Getting ahead of Canadian legislation

Although theScore has expanded across multiple US sports betting markets, most recently in Iowa, the Toronto-based company has also invested in expansion closer to home. Until now, a law preventing single-event sports wagering has hindered Canada’s market. Current gambling regulation only permits parlays with at least three events in one bet. A new bill, however, could soon change this.

Last Wednesday, the House of Commons approved bill C-218 upon its second reading. This repeals a section of Canada’s criminal code which deems single sports event wagering illegal. The legislation will now go to the Senate before it can be made law.

Everybody who’s on mobile apps uses theScore.”

During theScore’s Q1 2021 earnings call, Levy described the company as in the “pole position” to capitalize on the Canadian sports betting market because of the popularity of theScore’s sports media app.

“Everybody who’s on mobile apps uses theScore,” he commented. “If you add up TSN, Sportsnet, anybody else, they don’t even come close to us.”

theScore has estimated that a fully legal online gaming market in Canada could generate between $3.8bn and $5.4bn annually in gross gaming revenue.