Canada Gambling Market to Be Worth $4.6 Billion by 2030
After the passing of the Safe and Regulated Sports Betting Act, Bill C-2018, which legalizes single-gaming wagering, analysts believe that the gambling market of Canada will reach $4.6 billion by 2020.
Clad Beynon, Macquarie Group’s senior analyst, includes the $2.4billion from iGaming, after fully legalizing the market. Clad also mentions that every eligible gambling Canadian will spend $60 on sports betting and $75 on online casinos each year.
According to Beynon, BetMGM, DraftKings (DKNG), Caesars Entertainment (CZR), BetMGM, and Penn National Gaming (PENN), in the United States, as well as Toronto-based Score Media and Gaming (SCR), these companies are well-positioned to gain after possibilities of opening up north of the border.
DraftKings, in its study, estimated the Canadian gambling market’s potential to be between $5 billion and $8 billion, while BetMGM put it at $7 billion. However, no other operator posted their estimation—theScore Media and Gaming, which experts believe is best positioned to profit post-legalization of single-event betting.
Projections of share price
In recent times, theScore app witnessed an upward rise in share price in the past few months. Since there has been increased momentum for C-218, the company believes in capturing about 20% of its home market and rising by 255% of the share price.
According to the analyst, Penn National’s stock will witness a surge by 28 percent if it gains a 20% market share in Canada, which also owns a 5% stake in theScore Media and Gaming. MGM Resorts’ stock will see a rise by 18 percent. Moreover, there will be an increase for DraftKings, which deals with the NFL in Canada, and Caesars Entertainment, having a land-based casino in Ontario, is each 17 percent.
According to Benjamin Chaiken, an analyst posted at Credit Suisse, legalisation in Canada will also significantly impact the United States, because it is a “cash flow engine” for the Score Bet app and crosses four states where it is currently available, with the current operator’s share price more than doubling.