Why Bragg Gaming (TSX:BRAG) Stock Is up 16.6% Today!

Bragg Gaming Group (TSX:BRAG) stock is surging this morning, as the company announced its dual-listing on the NASDAQ stock exchange.

| More on:
grow dividends

Image source: Getty Images

Bragg Gaming Group (TSX:BRAG) stock is surging this morning, as the company announced its dual-listing on the NASDAQ stock exchange. The stock is up 16.65% at the time of writing and could go even higher before the end of the trading day. 

Here’s why this dual-listing is a catalyst for growth and what lies ahead for Brag stock investors. 

What happened?

Bragg has been trading on the Toronto Stock Exchange and over-the-counter markets in the U.S. for a while. However, the company has just announced its approval from the NASDAQ exchange. The stock will commence trading on August 27 (this Friday) under the ticker NASDAQ:BRAG.

Access to the American capital market is essential for any company. The stock market south of the border has much more liquidity, attracts more investors from across the world, and tends to fetch higher valuations for listings. Global investors are simply less risk averse. 

This is why BRAG stock is up 16% this morning and could be higher by the time the NASDAQ listing is completed. 

So what?

The NASDAQ listing doesn’t just give Bragg Gaming access to more capital but also allows it to bolster its presence in the world’s most lucrative iGaming market. Online betting or iGaming is on the verge of being legalized across the U.S., creating a market some experts estimate to be worth roughly US$60 billion (CA$75 billion). By comparison, Bragg Gaming is currently worth $255 million. 

Bragg’s operations currently include online games and gaming content studios based in Europe. Most of its revenue is derived from major European markets such as Germany, Norway, Denmark, and Finland. According to the company, the European market is worth an estimated US$2.8 billion (CA$3.5 billion), but entering the U.S., U.K., and Canada could expand the market opportunity to over US$18.4 billion (CA$23.2 billion.)

“We believe Bragg is ideally positioned to grow our business and gain share in the large global iGaming market and the Nasdaq listing is another positive step that will enable us to move forward aggressively with our plans,” BRAGG CEO Richard Carter said during the announcement. 

Bragg’s footprint could expand with this fresh influx of capital from the United States. Recent acquisitions, such as Nevada-based Wild Streak Gaming and Spin Games, cost roughly US$30 million (CA$37.8 million) each. A higher valuation allows the company to raise much more capital and bolster its mergers and acquisitions (M&A) strategy. 

What now?

BRAG stock is up 16.6% this morning, as the team secures approval to list on the NASDAQ stock exchange. Access to capital in the U.S. should bolster the company’s valuation and M&A growth strategy. 

Investors looking for growth could take a closer look at this emerging stock. Brag stock could be an ideal proxy for the online gaming theme across North America.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Tech Stocks

Growth from coins
Tech Stocks

2 Canadian Growth Stocks to Buy and 1 to Sell

The recent volatility in the stock market has created all kinds of opportunities for long-term investors.

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

3 Cheap Tech Stocks to Buy Right Now

Given their long-term growth prospects and discounted stock prices, I am bullish on these tech stocks.

Read more »

Redwood trees stretch up to the sunlight.
Tech Stocks

These 3 Magnificent Stocks Keep Driving Higher

Constellation Software, Dollarama and another TSX stock have consistently generated positive investment returns. Here’s why they belong in your retirement…

Read more »

A worker uses the cloud for paperless work. tech
Tech Stocks

Wanna Beat the Market? Try These 2 Tech Stocks That Look Undervalued Today

Here's why undervalued TSX stocks such as Vitalhub can help you generate outsized gains in the next 12 months.

Read more »

Target. Stand out from the crowd
Tech Stocks

2 Fintech Stocks I’d Buy and Hold Forever

High-growth fintech stocks such as Nu and Propel are positioned to deliver outsized gains to shareholders in 2024 and beyond.

Read more »

question marks written reminders tickets
Tech Stocks

Down by 31.43%: Is Lightspeed Stock a Buy After Earnings?

While its decline in share price might suggest the company isn’t doing well, the earnings report makes Lightspeed stock seem…

Read more »

Shopping and e-commerce
Tech Stocks

Is Shopify Stock a Buy Now?

Here's why Shopify (TSX:SHOP) ought to remain among the top growth stocks long-term investors want to own in this current…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Tech Stocks

Topicus Stock Jumps 16% on Killer Full-Year Earnings

Topicus (TSXV:TOI) reported strong earnings after revenues surged higher, and with a volatile market this is exactly what you want…

Read more »