Canada’s theScore has confirmed that opening a sportsbook in New Jersey this year is “just the beginning.”
In the long term, theScore intends opening sports betting apps throughout the US where sports-betting is legal.
This was implied by theScore founder and CEO John Levy on Wednesday during a quarterly earnings meeting.
He said theScore, already with 4 million media users, was well set to open in New Jersey by “mid-2019.”
“I’m pleased to report that we remain on track to deliver what we believe will be a best-in-class sports betting experience.
TheScore creating a unique integrated media-betting experience
“Our team is creating a unique integrated media and betting experience we believe will be truly differentiated.
“It will position us very well in the rapidly developing sports betting landscape throughout the US. This is just the beginning.”
Right now theScore is best known in the US as an online purveyor of major American sports news and scores. It is this online media service that has the four million users they hope to capitalize on
Development for its first move into US sports betting via the buoyant New Jersey market has not been cheap, however.
The company reported an earnings loss of $2.2 million for the second quarter, before interest, tax, depreciation, and amortization.
Loss driven by on-going sportsbook development costs
“This was driven primarily by increased expenses relating to the ongoing development of our sports betting business,” Levy explained.
Revenue for the quarter was $6.8 million, down from $7.1 million in the same period in 2018.
Revenue for the year, however, was up from $15.5 to $16.3 million as compared to 2018.
“This was on the strength of our Q1 sales,” Levy reported.
A big advocate for the expansion of legal gambling in Ontario where the score is based, Levy plans to expand outside of New Jersey as quickly as possible.
“As legalized sports betting continues to roll-out step-by-step we’ll be ready with a base of users that exist in each and every state across the US,” he predicted
It is “a very exciting time for theScore”
“As a highly recognized force in the Canadian mobile sports business with the most popular mobile sports app, we are ready. This is a very exciting time for us and we can’t wait to show you what we’re building.”
“We have a keen eye on the marketplace,” added company president Benjie Levy.
“Additional states are in various stages of legislative and regulatory development. As those states come online, we will be there pursuing access as part of that process.”
TheScore’s biggest rivals in New Jersey will be the US daily sports fantasy giants FanDuel and DraftKings. They were able to take many of their DSF users with them when they opened their NJ sportsbooks in mid-2018.
Right now, between the two, FanDuel and DraftKings hold as much as 80% of the NJ sports betting market in some months.
Last month’s ‘March Madness’ helped FanDuel set a state record with $17.6 million in revenue. DraftKings, previously the market leaders in most months since US betting was legalized in May, was next best with $7.3 million.
Overall New Jersey’s 14 sportsbooks banked $31.7 million in revenue last month. The total sportsbook handle for the same month was $372.5 and for the year-to-date since June 2018, $1.78 billion.
