Score media (TSX: SCR) (NASDAQ: SCR) is a Toronto-based media company providing sports news, information, highlights, live events and other sports-related entertainment programming. A month ago, I suggested that investors buy the downside of this TSX stock. Its shares were up 44% month over month at the June 24 close.
Today, I want to explain why it’s still a great time to grab Score Media for the long haul. Let’s go.
How Canada decided to legalize single match sports betting
At the start of this year, the prospects for legalizing single-game sports betting in Canada were uncertain. Bill C-218 amends the Criminal Code provisions relating to gambling in single sports games, which are currently illegal outside of horse racing. Supporters of the bill feared delays could push legalization until 2022 or maybe even later. Fortunately, the best of times have come with the bill that will legalize single game sports betting in Canada. Score Media has been encouraging this development for months. This is why I am looking to seize this TSX stock for the long term.
On June 22, the Canadian Senate approved Bill C-218. Canadian players were already participating in sports betting on a single match. Supporters of the bill argued that it would allow Canada to enter this lucrative market dominated by offshore sites, US casinos and illegal bookmakers.
The legislation received broad support from major sports leagues like the Canadian Football League and the National Hockey League.
Why this TSX share is perfectly positioned to capitalize
Score Media is already one of the most popular sports news apps with Canadian consumers. In the second quarter of fiscal 2021, the company reported that game management on theScore Bet grew 491% to $ 81.6 million. In addition, media revenue grew 8% year-over-year to $ 8 million. Yet the main driver behind this TSX action has been the enthusiasm surrounding the legalization of single game sports betting.
The company hailed the âhistoric momentâ of the passage of Bill C-218. Management expects theScore to be able to carve out a strong position for itself in a market where its brand enjoys strong brand awareness. In her statement, she estimated the potential of the online gaming market in Canada to be between $ 4.3 billion and $ 5.4 billion in gross annual gaming revenue. In addition, he predicts that the province of Ontario will be a market that will be equivalent to the fifth largest US state in terms of population.
This TSX share is home to Canada’s premier mobile sports media application. The app reaches around 3.75 million users annually across the country.
Sports betting is a very strong market in North America
In May 2018, I discussed the United States Supreme Court’s decision to overturn a federal ban on legal sports betting. This opened the door to the lucrative market south of the border. Drawings, one of the largest sports entertainment and digital games companies in the United States, saw its stock jump 41% in the year-over-year period.
In March, Technavio predicted that the global sports betting market would post a 10% CAGR from 2020 to 2024. A big test is ahead for sports betting enthusiasts in Canada. Fortunately, the bill was also passed ahead of the next National Football League season. It is by far the most popular sport in North America. Investors should look to hold this TSX stock for the long term after this historic legislative achievement.
The article PURCHASE ALERT: 1 TSX stock to own after Canada legalized one-game sports betting appeared first on The Motley Fool Canada.
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Foolish contributor Ambrose O’Callaghan has no position in the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.