BUY ALERT: 1 TSX Stock to Own After Canada Legalizes Single-Game Sports Betting

BUY ALERT: 1 TSX Stock to Own After Canada Legalizes Single-Game Sports Betting

Red siren flashing

Score Media (TSX:SCR)(NASDAQ:SCR) is a Toronto-based media company that provides sports news, information, highlights, live events, and other sports-related entertainment programming. One month ago, I’d suggested that investors buy the dip in this TSX stock. Its shares have climbed 44% month over month as of close on June 24.

Today, I want to discuss why now is still a great time to snatch up Score Media for the long term. Let’s jump in.

How Canada moved to legalize single-game sports betting

When this year began, the prospects for single-game sports betting legalization in Canada were up in the air. Bill C-218 amends Criminal Code provisions around gambling on single sports games, which is currently illegal apart from horse racing. The bill’s proponents feared that delays could push legalization through to 2022 or perhaps even later. Fortunately, the best-case scenario has transpired for the bill that will legalize single-game sports betting in Canada. Score Media has been cheerleading this development for months. That is why I’m looking to snatch up this TSX stock for the long haul.

On June 22, the Canadian Senate approved Bill C-218. Canadian gamblers were already taking part in single-game sports betting. Proponents of the bill argued that this would allow Canada to get in on this lucrative market that was dominated by offshore sites, U.S. casinos, and illegal bookmakers.

The legislation received widespread support from major sports leagues like the Canadian Football League and the National Hockey League.

Why this TSX stock is perfectly positioned to capitalize

Score Media is already one of the most popular sports news applications among Canadian consumers. In Q2 fiscal 2021, the company reported that gaming handle on theScore Bet achieved growth of 491% to $ 81.6 million. Moreover, media revenue rose 8% year over year to $ 8 million. Still, the key driver for this TSX stock has been excitement surrounding single-game sports betting legalization.

The company praised the “historic moment” that was the passing of Bill C-218. Management expects theScore to be able to carve out a strong position in a market where it boasts strong brand recognition. In its statement, it estimated that the market potential for online gaming in Canada was between $ 4.3 billion and $ 5.4 billion in annual gross gaming revenue. Moreover, it projects that the province of Ontario is a market that will be equivalent to the fifth-largest U.S. state by population.

This TSX stock is home to Canada’s leading mobile sports media app. The app reaches roughly 3.75 million users annually across the country.

Sports betting is a very strong market in North America

Back in May 2018, I’d discussed the decision by the U.S. Supreme Court to strike down a federal ban on legal sports betting. This blew open the door for the lucrative market south of the border. Draftkings, one of the largest digital sports entertainment and gaming companies in the U.S., has seen its stock climb 41% in the year-over-year period.

In March, Technavio projected that the global sports betting market would post a CAGR of 10% from 2020 through 2024. A big test is coming for sports betting enthusiasts in Canada. Fortunately, the bill has also been passed ahead of the next National Football League season. This is the most betted on sports in North America by a wide margin. Investors should look to snag this TSX stock for the long term after this historic legislation achievement.

The post BUY ALERT: 1 TSX Stock to Own After Canada Legalizes Single-Game Sports Betting appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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