What Happened: Under a ten-year agreement with Caesars Entertainment Inc’s (NASDAQ:CZR) Harrah’s Joliet Hotel & Casino, Score Media will launch its sports betting app in Illinois in the second quarter of 2021. Illinois marks the fifth state, after New Jersey, Colorado, Indiana and Iowa, where Score Media will have a presence.
Under the agreement Score Media will pay Caesars a percentage of the revenue generated from its mobile app and reimburse Caesars for some costs such as licensing fees. After the first 10-year agreement comes to a close, the companies will look at renewing their partnership for an additional 10-year term.
Why It Matters: After listing on the Nasdaq on Feb. 25 and generating $186.3 million gross proceeds through a public offering, this is Score Media’s first announced expansion. Score Media plans to move into nine more U.S. states and into Canada when sports betting becomes legal later this year. Illinois was not included in Score Media’s expansion plans in its agreement with Penn National Gaming, Inc (NASDAQ:PENN).
The partnership with Caesars could give Score Media access to a number of additional states where Caesars operates and Penn National does not.
“Gaining market access to Illinois is a significant development that will bring our award-winning mobile sportsbook to one of the most populous states,” said John Levy, chairman and CEO of Score Media. “Caesars is a giant in the casino-entertainment industry and we’re thrilled to have reached this agreement to extend theScore Bet’s footprint into another key new market.”
(Photo: Score Media)
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