Jersey Score! theScore Granted Initial Approval for Sports Wagering Activities in NJ

Today theScore (TSXV: SCR) announced they have received initial approval from the New Jersey Division of Gaming Enforcement (DGE). The approval is for a subsidiary, Score Digital Sports Ventures, which would allow for Internet and mobile sports wagering activities in the state of New Jersey.

In accordance with the DGE’s procedures, theScore will undertake a soft-launch phase of its sportsbook app with a select group of sports bettors in the state in the coming days. The timing couldn’t be better with the Score’s anticipated state-wide launch in advance of the NFL season.

This is a huge milestone and a result of the tireless hard work that has gone into getting our sportsbook ready for launch…. We can’t wait to debut a best-in-class sports betting offering in New Jersey, delivering a truly unique and holistic sports media and wagering experience for fans.

John Levy, CEO, theScore
John Levy, CEO, theScore

theScore’s main operating asset today is a mobile app called ‘theScore’ with daily active users in the millions. To be exact, 3.9 million monthly users as of their last quarter filing:

The daily active users has been declining for the last few quarters, and the company is currently EBITDA negative:

Q3’19 MD&As, theScore, Sedar

The future of sports betting is clearly a gigantic first mover for any publicly company to try to grab. theScore already has a daily user engagement that could easily be converted into regular sports bettors. And it wouldn’t be wild for one to assume if New Jersey led the way with online sports gambling, they would allow for loopholes for out of state gamblers, given the taxation revenues from the sector would very lucrative for the state.

The score is up 6c today to 55c, at the time of publishing, approximately 12.2% from yesterdays close.

Information for this commentary and analysis was found via Sedar and theScore. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.