Penn National Gaming’s $2 billion buyout offer for Score Media and Gaming has been approved by the Minister of Canadian Heritage. This was the last major hurdle in a deal that is expected to close by the end of the month.
The final part of the approval process was also completed on Oct. 12. Shareholders of theScore voted to accept the offer. This clears the way for Penn National’s plans to leverage the company’s sportsbook and gaming technology.
With the acquisition of the Canada-based media and gaming company, Penn National can eliminate third-party gaming technology and service providers. This is a major step forward as the company expands its market presence behind the Barstool Sportsbook brand.
As another sports betting entity, theScore developed its own betting platform. This is the No. 1 betting app in Canada and the third most popular app in North America. This is according to Jay Snowden as the President and CEO of Penn National Gaming.
The deal was first announced in August of this year. This was around the same time that Canada amended its sports betting laws to allow single-game wagers. The only legal form of sports betting in the past were wagers on parlays.
Penn National’s goal is to create the “leading digital sports content, gaming and technology company” in North America. The addition of theScore’s modern technology and betting platform will be the driving force.
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The Pennsylvania-based casino gaming and entertainment company has enjoyed widespread success with its Barstool Sportsbook mobile betting app. Snowden offered the following insight on acquiring theScore:
“We anticipate that the acquisition of theScore will provide adjusted EBITDA accretion by Year 2, an incremental $200 million medium term adjusted EBITDA, and $500 million of incremental long-term adjusted EBITDA upside.”
Each company’s board of directors had previously approved the deal with unanimous votes. The lone sticking point was approval by the Canadian government. With the Minister of Canadian Heritage clearing that path under the Investment Canada Act, the deal can now close.
The terms of this $2 billion deal involved both cash and stock. Penn National shareholders will hold 93% of the company’s outstanding shares. Shareholders of theScore will now retain the other seven percent.
Snowden went on to add:
“Users will enjoy a unique mobile sports betting and iCasino platform with highly customized bets and enhanced in-game wagering opportunities, along with highly engaging, personalized 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.”
Score Media and Gaming formed a strategic alliance with Penn National Gaming in 2019. The primary collaboration has been the formation of the Barstool Sportsbook mobile sports betting app.
As Chairman and CEO of theScore, John Levy previously stated:
“The deal brings together two companies that share a vision for how media and gaming intersect, and we could not be more excited to join the Penn National family.”
In preparation for this acquisition, theScore has been working on the development of an enhanced online betting platform. This was designed to facilitate the process of merging with Penn National’s online gaming interests.