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Read Full BioPENN Entertainment has laid off over 75 workers at Canadian sports media and gaming company theScore.
The news was broken by Canadian Business Gaming (CGB), with the workers told on Thursday last week that they were no longer required.
“These changes reflect the ongoing evolution of our digital business,” a company spokesperson told CGB on Friday. “Under the leadership of key recent product and technology hires, we are structured to advance our online strategy and efficiently grow our business.”
PENN’s Focusing Away From Media, Towards Gambling Industry
PENN’s online strategy is to focus more on the sports betting and iGaming side of theScore as opposed to the media section.
The company recently launched theScore Casino in Ontario, and plans to expand its reach in Canada by launching in Alberta when the province opens up to regulated betting companies.
Alberta will become Canada’s second province to have a regulated online gambling market. It follows Ontario, and is expected to launch next year.
PENN decided to withdraw theScore Bet from the US market after acquiring the company.
Previously the platform had launched in four US states. First was New Jersey, followed by launches in Colorado, Indiana, and Iowa. Operations were officially closed in July 2022.
Gambles Not Paying Off for PENN, Say Investors
PENN’s original $2 billion acquisition of theScore and subsequent decision to withdraw the platform from the US market has been heavily criticized by investors, along with other ventures into the gambling industry.
Last year, William Wyatt, managing director of the investor Donerail Group, called the company’s strategy “misguided”.
This year, shareholder group HG Vora has also been outspoken in their disapproval of the company. It accused leaders of “value-destructive deal-making, reckless capital allocation and poor execution”.
The group created a 116-page document outlining strategic failures, which have led to a 90% decline in the value of the company from 2021.
Among the failures is the $550 million acquisition of Barstool Sports. It was subsequently sold back to owner Dave Portnoy for $1.
PENN decided to focus its US presence on Barstool rather than theScore. However, the platform struggled to obtain sports betting licenses in the US due to the Barstool’s image.
At the same time PENN announced the sale of the company back to Portnoy, it also reported a $2 billion investment in ESPN Bet.
PENN launched its interactive division in 2023, encompassing theScore, ESPN Bet, and Hollywood Casino.
The division generated revenue of $960 million in 2024, up from $719 million in 2023. Despite revenue growth, annual losses increased from $403 million in 2023 to nearly $500 million in 2024.
HG Vora successfully installed two directors at last week’s annual shareholder meeting, but the market reaction remains muted. Time will tell whether the latest move to reduce staff at theScore pays dividends.
