TheScore To Move Trading In-House After Seventh Consecutive Quarter Of Net Losses

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TheScore has announced plans to bring its risk and trading in-house after a run of poor results. 

The Toronto-headquartered firm announced Wednesday it had hired industry veteran Patrick Jay to oversee the new trading function.

Jay, formerly of Ladbrokes and the Hong Kong Jockey Club, joins in September.

Following his arrival, theScore will take over trading from Bet.Works at some point in the next 12 months.

Bad run of results for theScore Bet

On Wednesday, theScoreBet reported a $2 million loss in net gaming revenue.

That marked the seventh consecutive quarter with a net gaming loss for the operator. 

Gross gaming revenue was also negative at -$32k.

Vertical integration plans

TheScore COO Benjie Levy said:

We expect to complete the vertical integration of our sportsbook operations over the next year with the migration of risk and trading in-house. In Patrick Jay we believe we have the ideal candidate to lead our efforts.

“Patrick is a highly regarded industry veteran with an impressive track record leading risk and trading services at high profile properties across the global gaming sector. That includes five years at the Hong Kong Jockey Club and six years at Ladbrokes.”

As part of that vertical integration, theScore is also fully deploying its own player account management (PAM) platform and promo engine next month.

The company is aiming to build and own its entire tech stack over the next year. Levy said taking more control of the platform would lead to better margins and a more seamless experience for users.

Shares down as well

Despite the plans, theScore shares fell 10% in early trading on Thursday after the company missed expectations in its Q3 results.

Total revenue for the three months to May 31 was up 170% to $5.1 million, compared to analyst expectations of $7.4 million.

Handle was $58 million in the quarter, down from $65 million in the prior quarter, thanks to a slower sports calendar.

Analyst remain bullish on theScore

Eight Capital, however, shrugged off the slow quarter, maintaining a buy rating on the stock at C$65.

“We continue to view theScore as a nascent but disruptive industry player, with an expanding TAM opportunity ahead,” Eight Capital said.

 “Further, we see several near term catalysts for shares including the launch of the Canadian market in H2, new state launches, new market access agreements and the launch of online casino (H2).”

The Score said it aims to double the number of US states it is live in over the next 12 months.

The company could also be one of the market leaders in the forthcoming Canada sports betting market.