NEW YORK, Feb. 26, 2021 /PRNewswire/ -- Sports fans across the nation in Canada rang out with joy at the announcement of the House of Commons passing of Bill C-218, potentially putting an end to a decades-long prohibition on single-event sports betting. With just a few more hurdles left in the way before moving to the senate and then the Governor-General for Royal Assent, should the bill pass, it will allow provinces and territories to each be given responsibility of regulating single-event sports gambling. The addition of Canada only helps to bolster the North American sports betting market, in which Morgan Stanley predicts the US market will generate $7 billion in revenue by 2025. Many gaming developers stand to benefit from the expansion, including Bragg Gaming Group (TSX:BRAG) (OTCQX:BRGGF), Elvs Game Technology Corp. (NASDAQ:ELYS), Caesars Entertainment (NASDAQ:CZR), Melco Resorts & Entertainment (NASDAQ:MLCO), and Golden Nugget Gaming (NASDAQ:GNOG).
"We're very pleased with the successful outcome of the [303-15] vote," said Paul Godfrey, Bragg Gaming Board Member. "The overwhelming backing for the Bill is a strong indication of Canadians' overall support of the move to legalize single-event betting, and a very positive step for both the legal gambling market in Canada and the overall economy. Not only will this Bill ensure that profits from sports wagering go back into Canadian communities, rather than illegal black-market channels, but it will also secure Canadian jobs and create a safer, more regulated environment for Canadians."
As it gears up for the potential breakthroughs in Canada, Bragg is coming off of a series of wins in the sports betting arena in markets around the world, including the previous announcement of its subsidiary ORYX Hub platform's launch of Remote Gaming Server (RGS) services for European sports betting and casino operator Betway.
"Our RGS content has already been proven strong in Germany and beyond, and this partnership will further strengthen the reach and reputation for both our companies," said Managing Director of ORYX Gaming, Matevz Mazij. "We're delighted to see our partnership with Betway go live and our titles are going to offer a new dimension of content to their player."
Bragg Gaming had also struck a deal to enter the Netherlands prior to the Betway agreement, this time with Dutch land-based operators JVH Gaming & Entertainment Group. As per the deal, it also included an integration with leading global sports betting provider Kambi Group.
All in all, Bragg has been on a roll over the last 12 months, and seeing legalization on the horizon in its home country of Canada is altogether a sweet experience for the company that's already seen exceptional revenue growth of 72% from Q3 2020, and its graduation to the country's most prominent board, the Toronto Stock Exchange.
South of the Canadian/US border, Elvs Game Technology Corp. (NASDAQ:ELYS) (FRA: 3UW) recently announced an expansion in its partnership with Sportradar to provide Live US sports data on its betting platform.
"We believe that Sportradar's cutting edge technology, superior data and analytics will enable us to execute our vision of building a premier, end-to-end sports betting solution for European and North American gaming operators," said Matteo Monteverdi, CEO and President of Elys Game Technology.
Back in January, Caesars Entertainment (NASDAQ:CZR) announced its investment in SuperDraft, which operates across seven professional sports in more than 35 states, for daily fantasy sports playing.
"The addition of daily fantasy sports fits seamlessly with our strategic vision for mobile and online sports," said Caesars Entertainment CEO, Tom Reeg. "SuperDraft's innovative multiplier game mode is unique in the marketplace, and we believe it offers a tremendous opportunity to strengthen our position in the sports gaming landscape."
The move towards iGaming has been crucial for the industry over the past year. Traditional brick-and-mortar-based casino companies like Melco Resorts & Entertainment (NASDAQ:MLCO) were especially hit hard in 2020. However, as casinos reopen around the world, Melco has the most to gain in Macau. The company is controlled by Lawrence Ho, a son of Macau's gambling magnate Stanley Ho. Macau's sports betting scene is vastly different from what we see in North America. Especially given that not a single casino in Macau actually offers a sportsbook to draw in customers. Instead, they're all relegated to dedicated betting shops, all of which are owned by Stanley Ho's Macau Slot. So the connection is there, should Ho the younger want to take his casino company down that road. For now, online sportsbooks are doing massive business in Macau; however, the region's gambling laws still forbid their citizens from using these online sites. Seeing a shift in a country like Canada could have an impact on Macau down the road.
One famous gaming brand that's known for its online presence is Golden Nugget Gaming (NASDAQ:GNOG). Despite some difficulty on the market after it completed its reverse merger with Landcadia Holdings, Golden Nugget is undeterred, having recently entered a definitive agreement with Tioga Downs Race Track for future online gaming market access in the state of New York, subject to legislation, regulatory approval, license eligibility, and availability.
As Canada begins to take steps to opening up its sports betting market, companies like Bragg Gaming Group (TSX:BRAG) (OTCQX:BRGGF) are in a good position to become first-movers in what could become a newly invigorated marketplace.
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