• Wed. May 12th, 2021

Rating Media CEO John Levy Says Firm in ‘Pole Place’ for Canadian Sports activities Betting

BySpeed Casino

Jan 18, 2021

Posted on: January 16, 2021, 11:43h. 
Final up to date on: January 17, 2021, 01:55h.

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As Rating Media and Gaming Inc. introduced its 2021 fiscal yr first-quarter outcomes this previous week, the Canadian-based publicly traded firm additionally saved a watch on the longer term. That not solely means single-game betting in its dwelling and fatherland, however a list on a US inventory alternate as effectively.

Rating Media and Gaming Founder and CEO John Levy talks with Phil Beere of Sightline Funds on the 2019 Betting on Sports activities America Convention. This previous week, Levy stated his Canadian firm is in “pole place” to be the highest sports activities betting firm in Canada, the place the corporate relies. (Picture: Rating Media/Sightline Funds/YouTube)

For the quarter, which ended on Nov. 20, the sports activities media and cellular betting firm reported CAD 10.6 million (US 8.3 million) in whole income. That could be a quarterly report for the corporate. It’s additionally 15.2 % higher than the CAD 9.2 million (US $7.2 million) reported within the first quarter of 2020.
The quarter started with launches of theScore Guess, the corporate’s on-line sports activities betting app, in Colorado and Indiana. These additions tripled the variety of states the place the corporate operates. Not surprisingly, the corporate reported a report CAD 55.8 million (US $43.8 million) deal with for the quarter. That represented a 535 % bounce from the identical quarter in 2020.
Whereas Deal with Up, Gaming Income within the Crimson
Nonetheless, the corporate additionally reported a gross gaming lack of CAD 300,000 (US $235,565). When factoring in free bets, bonuses, and truthful worth on unsettled bets, the online loss is CAD 2 million (US $1.6 million).
Throughout a name with analysts Wednesday to debate the earnings, Rating Media President and COO Benjie Levy stated the loss was attributable to participant promotion specials and the Indiana and Colorado openings.
Among the many promotions the sportsbook has supplied because the resumption of main skilled sports activities was a 5 % cashback supply over a 60-day interval that started with the location of a buyer’s first guess. The promo was capped at $2,500 and utilized whether or not the bets gained or misplaced.
Levy informed analysts turning these negatives into positives will depend on a few issues. That features rolling out the app in further states. Nonetheless, he stated the corporate sees constructive motion.
“I can inform you it isn’t going to take years to get there, and it’s most likely not going to occur within the subsequent month or two,” stated Levy, in response to a transcript on Searching for Alpha. “So, we’re persevering with to construct, the momentum is working in our favor. And I don’t suppose I may be any extra particular than that. However, we’re beginning to see encouraging outcomes as we acquire momentum within the states that exist, and hopefully within the new states that come on board.”
One new state the place the corporate is making ready to launch is Iowa. Firm executives hope to be within the state inside weeks, pending regulatory approval. Iowa, like Indiana, is considered one of 11 states theScore has entry to via a take care of Penn Nationwide Gaming.
CEO: Firm’s Attain in Canada Unequalled
Nonetheless, one market firm officers are actually enthusiastic about is the one of their yard. They informed analysts that there’s cross-party momentum inside Parliament to repeal the ban on single-game wagering in Canada this yr. That transfer would drastically increase sports activities betting within the nation, as solely parlay betting is at the moment authorized.
With its sports activities betting app already intently tied to its sports activities media app, Rating executives suppose they might have a bonus within the Nice White North just like what FanDuel and DraftKings have in US states.
As Founder and CEO John Levy plainly put it: “Now we have the pole place right here.”

I feel after we have a look at the 2 markets (US and Canada), we have a look at the dramatic variations by way of our attain and our model recognition, and look – everyone in Canada is aware of theScore,” John Levy stated. “Everyone who’s on cellular apps makes use of theScore. Should you add up (Canadian sports activities media shops) TSN, Sportsnet, anyone else, they don’t even come near us.”

The sports activities media app averaged 3.9 million month-to-month customers. These people averaged utilizing the app 116 instances per thirty days, in response to firm figures.
He estimated the potential of the annual gross income for Canadian on-line gaming between US $3.8 billion and US $5.4 billion.
Within the US, firm executives stated no less than 50 % of theScore Guess customers have been additionally utilizing theScore sports activities media app. The media additionally provides customers the chance to put wagers on video games, which can enhance progress in in-game betting.
Levy Hopes to Rating US Inventory Itemizing
Final month, Rating Media closed on an fairness deal that introduced in CAD 46 million (US $36.1 million) for almost 32.9 million shares of inventory. Among the many makes use of the corporate plans for the proceeds embody further rollouts of theScore Guess within the US and Canada. Firm officers can also use a few of that cash towards consumer acquisition.

In September, the corporate earned a list on the Toronto Inventory Alternate, transferring away from the extra speculative Toronto Enterprise Alternate. The Toronto market is Canada’s largest, and the eighth-biggest on the earth. That stated, Rating Media (TSE:SCR) executives introduced they’re considering a list on an American alternate.

“We imagine the potential advantages for theScore, and our investor base might embody a considerably bigger pool of capital, larger common each day buying and selling quantity, publicity to a bigger variety of US retail and institutional traders, and a possible enhance in market valuation,” John Levy informed analysts.
The corporate will maintain its annual assembly with stockholders nearly on Sept. 10. At the moment, the corporate will ask shareholders to permit Rating Media’s board to provoke a inventory consolidation. John Levy stated that transfer is together with a possible US itemizing.

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