theScore and Penn National Gaming reach agreement

(PRESS RELEASE) -- theScore, Inc. today announced a major expansion of its U.S. mobile sports betting platform, through a multi-state market access framework agreement with Penn National Gaming Inc., North America’s largest regional gaming operator. In connection with the framework agreement, Penn National has also agreed to take a strategic equity stake in theScore.

The 20-year framework agreement provides theScore with the right to obtain market access to offer online and mobile sports betting and iGaming applications in 11 states where Penn National operates casinos and racetracks. These rights include “first skin” access rights in Louisiana and Mississippi, “second skin” access rights in Indiana, Iowa, Missouri, Ohio, and Texas, and “third skin” access rights in Michigan, Massachusetts, Maine, and Kansas. A “skin” refers to the number of online brands an individual casino or racetrack may offer pursuant to applicable state gaming laws and regulations.

theScore’s ability to launch and operate online and mobile sports betting and i-gaming applications in these states will depend on the adoption of laws and regulations permitting online and mobile sports betting and i-gaming, as well as receipt of all relevant licenses and approvals. To date, Indiana and Iowa have already enacted laws that will permit theScore to exercise its market access rights under the framework agreement, while several other states are actively considering legislation to legalize online and mobile sports wagering.

Concurrently, theScore also announced a US$10 million private placement of Class A subordinate voting shares (“Class A Shares”), at a price of US$0.45 (C$0.59) per Class A Share (the “Private Placement”). Penn National has subscribed for US$7.5 million of Class A Shares as part of the Private Placement, alongside other investors including John Levy Family Holdings Ltd., the family holding company of theScore Founder and CEO John Levy. Proceeds from the Private Placement will be used to facilitate the expansion of the Company’s sports betting platform in the United States including the funding of an upfront market access fee of US$7.5 million due to Penn National under the framework agreement. Closing of the Private Placement, expected to occur on or about August 9, 2019, is subject to approval of the TSX Venture Exchange.

“Securing this highly-coveted partnership with Penn National is a major step towards our goal of becoming a leader in mobile sports betting in the United States,” said John Levy, Founder and CEO of theScore. “We are thrilled that Penn National believes in, and has invested in, our vision of an integrated approach to media and sports betting and we can’t wait to unveil the best-in-class mobile betting experience that we’ve been building for sports fans.”

“theScore has been a trailblazer in the sports media landscape for years, and we are excited to be forming a strategic partnership with John and his team as they embark on the first truly integrated sportsbook and sports media platform,” said Jon Kaplowitz, SVP Interactive Gaming for Penn National Gaming.

theScore’s sports media app for iOS and Android is already one of the most popular sports apps in North America, with an audience of approximately four million monthly active users that span every U.S. state. In late 2018, theScore announced plans to be the first media company in North America to launch a mobile sports betting platform, initially in New Jersey through an agreement with Darby Development LLC, the operator of Monmouth Park racetrack.

theScore remains on schedule for the launch of its mobile sports betting application in New Jersey, subject to receiving all relevant licenses and approvals from the New Jersey Department of Gaming Enforcement (DGE) and the New Jersey Racing Commission (NJRC). theScore’s mobile sports betting applications will leverage proprietary sports betting platform technology by U.S. based i-gaming and sportsbook provider Bet.Works.