Bipartisan support is pushing through a bill to legalize single-game sports betting in Canada. The Canadian senate banking committee saw the bill emerge without amendments last week. If Bill C-218 becomes law, then Las-Vegas style sports betting could come to Canada! 

Now it just needs to pass one final vote in the Senate chamber, then it’s on to royal assent and then, after a very fancy signature, will become law. All with minimal negotiation. 

It’s rare to see both sides of the aisle in Canadian politics agree, but it seems the impacts of CV19, unrestrained spending (not to mention self-balancing national budgets!), and seeing other countries profiting have led to this decision. Estimates for the potential tax revenues of legalized single-game sports betting in Canada are staggering.

Single-game sports betting is massive in unregulated overseas markets, and it’s pretty obvious why this bill exists: There are over 30-million potential customers in this country, and right now they can only place parlay bets. Sports betting in Canada seems to be the next logical step for teams, players, and investors. 

According to Deloitte, CAD$15 billion was bet on sports in Canada in 2020. 

Why Legalizing Sports Betting Will Have A Massive Impact on Investors

Sure, there are a few reasons, like how much tax revenue the government can generate. Another is the possibility of investment into companies that are waiting to enter the Canadian sports betting scene. 

DraftKings (NASDAQ:DKNG), founded in Boston, Massachusetts in 2012, was the first daily fantasy sports company to receive investment from a major US professional sports organization. In 2013, Major League Baseball invested an undisclosed amount into the company. DraftKings stands now as the biggest single-game sports betting company.  The company has seen recent advancements from tech and valuation for it seems to be going up.

Another stock might be more pivotal to this particular development, as it’s a Canadian one. Score Media and Gaming Inc. (TSX:SCR) has gone up 800% in the past 5 years. According to SimplyWallSt, analysts predict revenue growth for Score (TSX:SCR) to rise from US$18 million in 2021 to almost US$850 million by 2025! 

 

Another thing to look at: E-Sports

Engine Media Holdings (TSXV:GAME) reported a YoY revenue growth of 163%. Enthusiast Gaming (TSX:EGLX) is focused on creating the largest gaming media platform. Enthusiast (TSX:EGLX) reaches 300 million gamers and esports fans per month via community engagement, brands, and websites. 

It would only be a matter of time before esports betting follows on the heels of legalized single-game sports bets in Canada. 

The Bottom Line

While this should not be taken as financial advice, betting on the fact that people want to bet has been one of the surest bets in human history. Just look at Las Vegas. The CV19 situation and lockdowns caused many people to seek new opportunities to generate extra income, and single-game sports betting is one of the best ways to target this massively growing market. 

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