theScore Inc (CVE:SCR) Scores Huge on U.S. Supreme Court Decision

theScore Inc (CVE:SCR) (OTCMKTS:TSCRF) is experiencing a second straight session of parabolic price action. This comes on the heels of an landmark Supreme Court decision, which could have important ramifications for the popular North American multi-sport news and data app. Where the music stops is anyone’s guess.

The catalyzing decision comes via yesterday’s Supreme Court verdict to strike down the Professional and Amateur Sports Protection Act of 1992 (PASPA). This is the federal law which effectively limited sports betting to one state for the last 25 years (Nevada). With PASPA declared unconstitutional in the 6-3 panel decision, it will be up to individual states to decide whether to allow its residents to bet on sports.

Starving for tax and gaming revenue, gambling proponents should pounce quickly. According to the American Gaming Association (AGA), at least 18 states have introduced legislation to legalize sports betting. Unshackled by federal law, states no have the chance to pass legislation and gain a little piece of Nevada’s action.

Obviously, the ramifications for theScore are substantial. With a business model top-heavy dependent on advertising revenue, more app engagement directly affects the bottom line. Furthermore, the gambler with monetary skin in the game in undoubtedly more likely to engage the app on multiple daily occasions. I don’t have any statistics, but you can bet repeat visits are orders-of-magnitude higher than the casual fan.

To get a glimpse of just how large the market is, consider that despite PASPA’s existence, the AGA estimates at least $150 billion a year is gambled on sports in the U.S.—with 97% of that amount bet illegally. With sports betting made onerously difficult by online credit card restrictions, outright online gaming purchase bans and more, that market is poised to increase substantially.

Who stands to benefit? The sports book operators of course. But coming in a close second are the digital product vendors, as throngs of people check up on their “investments”.

Commenting on the ruling, Founder and CEO John Levy was obviously thrilled: “We’ve been watching this space for some time and eagerly anticipating this ruling,” added Levy. “The ruling unlocks exciting opportunities and we are uniquely positioned to deliver amazing fan experiences on mobile and in-game as the betting market develops.”

To give an idea of the scale theScore possesses, theScore e-sports recorded more than 20 million video views in Q2 2018—up from 6.5 million during the same period in 2017. TheScore’s social channels were also heavily trafficked, reaching in excess an average of 30 million people a month during Q2. One can only surmise what yesterday’s ruling will mean to the top line.

In terms of the technical take, we don’t have one. TheScore has been grinding down in monotonous fashion for so long (2.5 years), the technicals mean little. We’ll have to wait a few days or weeks to see if anything discernible comes along. The Midas Letter will follow up as further events warrant.

TheScore soared higher $0.105 to $0.385/share, ↑37.50%. Volume was 9,965,649 shares, which lead all Toronto Venture Exchange issues by over 3-fold.

Original article: theScore Inc (CVE:SCR) Scores Huge on U.S. Supreme Court Decision

©2018 Midas Letter. All Rights Reserved.