The gambling industry is one that is extremely profitable and highly resilient, even in poor economic conditions, as seen by Gamehost.
Gambling becomes even more intense and thrilling when you add sports to the mix and allow the gamblers to bet on a variety of matches and outcomes.
What can make this industry even more profitable is cutting down on some of the larger expenses by creating digital platforms that scale much better.
Stars Group is a great example of the growth and margins that are possible when offering gambling through digital channels.
One up and comer that is new to the industry and finally has its sportsbook open in New Jersey is Score Media and Gaming (TSXV:SCR).
Score has long been the go-to app for sports fans to get information on their favourite teams, injuries, schedule, and results of games.
In fact, in the fourth quarter, it reached a record number of mobile users with 272 million mobile sessions in the quarter, representing 6% growth. Score estimates this equates to every user opening the app roughly 75 times a month.
To start its mobile sportsbook, Score used this wide audience and reach to launch its Score Bet mobile app, which is now up and running.
On top of its New Jersey sportsbook, it also gained access to an additional 11 states for future launch.
The sports betting app is well designed and purpose built for iOS and Android systems. On top of that, it’s built into the existing sports app, so users can have a truly holistic and better experience.
Score is the first North American company to operate a mobile sportsbook, and this early mover advantage could be huge.
The launch its highly anticipated sportsbook platform doesn’t mean it has abandoned its media business. In fact, Score has actually doubled down on the media business and continues to search for new growth avenues.
It has also introduced its new feature, bet mode, for Canadian users. Bet mode gives users access to a number of live scores and stats without the user having to refresh the screen. This is aimed at helping those users who are live betting, and Score expects this to be another driver of growth in its media division.
The media segment also secured record advertising in the fourth quarter, as Score’s reach grows but also as it figures out how to integrate ads to improve customers conversion rates. Its new advertising partners have significant brand integration with the app, which should drive a lot of recurring advertising for Score.
It has also been releasing betting articles to capture more readers and users as well as driving bets on its platform
Score’s e-sports business as well as its social media business have also seen massive growth. Both are complementary elements to it media business and continue to work to drive more sports fans to its sites and apps.
In a digital world that only gets more technical by the day, Score Media and Gaming is doing something nobody else has yet. The work it’s done to drive users of its app and sports fans to its many pages all has the same goal, and the integration should work well.
Given that the company’s strategic plan is so unique and it’s the first company to do this, I’m optimistic about how it will turn out, but only time will tell.
Score’s stock is trading for less than $0.60 at the moment, giving the illusion that it’s a highly speculative penny stock. While there is increased risk and also increased potential for massive growth, the company has a market cap of $200 million, so it’s larger and more established than many other penny stocks.
What’s most appealing is that $200 million for its potential is still extremely cheap, so investors can get some exposure today and wait on some impressive growth.
