As a result of the legalization of single-game sports betting in Canada, the market for sports betting Canada operators has expanded significantly. This has led to further speculation regarding which operator is best positioned to capitalize on this development.
The legalization of single-game sports wagering follows the passage of Bill C-218 by the Senate, also known as the Safe and Regulated Sports wagering Act. The measure was a private member’s bill sponsored by Kevin Waugh, a Conservative member of Parliament. The Senate passed the bill with a vote of 57 to 20, with five senators abstaining. In addition, it eliminates the long-standing prohibitions in section 207 (4)(b) of the criminal code, which previously prohibited bookmaking or recording wagers through a pool system, on any race or fight, or on a single sporting event or athletic contest.
A $1 billion dollar market
The legislation is currently being implemented at the provincial level in Canada. Ontario is anticipated to act later in the year by establishing a market that will be larger than some of the top-performing American states for sports wagering, such as New Jersey and Illinois. According to Chad Beynon, a senior analyst at Macquarie, the Canadian sports wagering market could be worth a staggering $2.2 billion by 2030.
Moreover, iGaming is anticipated to generate an additional $2.4 billion based on the assumption that each Canadian adult will spend an average of $60 annually on sports betting and $75 on sports betting. Analysts anticipate that theScore media and gaming operator will be in the best position to profit from online wagering. The legalization of single-event wagering in Canada.
A Beneficial Market For All
Chad Beynon predicts that Canada’s population, household income, and sports culture (affiliations with the NBA, MLB, and NHL) will make it an attractive market for U.S. operators. In addition, according to Beynon, the legalization of Canada’s single-game sports wagering market is highly advantageous for operators such as DKNG, PENN, SCR, and MGM. DraftKings estimates that the Canadian market for sports wagering is worth between $5 and $8 billion. Following the passage of Bill C-218, theScore app’s share price soared dramatically over the previous month, contrary to market forecasts.
Beynon believes that the operator’s share price would increase by 255% if it were able to capture just 20% of its domestic market. DraftKings, which has an agreement with the NFL in Canada, and Caesar’s entertainment, which operates a land-based casino in Ontario, are both expected to experience a 17% increase in their share prices.
Analysts anticipate an additional 18% increase for MGM resorts and a 28% increase for Penn National stock. Lastly, the legalization of sports wagering in Canada is anticipated to serve as a “cash flow engine” for the Score Bet app, causing the share price of the US-based operator to more than double.