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

clock time
Tech Stocks

Long-Term Investing: 3 Top Canadian Stocks You Can Buy for Under $20 a Share

These three under-$20 stocks offer excellent buying opportunities for long-term investors.

Read more »

Businessman holding AI cloud
Tech Stocks

AI Will Transform Everything: Investors, Be Early Adopters and Buy These 3 Stocks

Investors looking to invest in companies doing big things in AI should consider these three stocks for their portfolios.

Read more »

stock research, analyze data
Tech Stocks

Forget Shopify: These Unstoppable Stocks Are Better Buys Today 

Should you consider buying Shopify stock while rivals consider a buyout or should you go for stocks with a stronger…

Read more »

A colourful firework display
Tech Stocks

2 Potentially Explosive Stocks to Buy in March

These two growth stocks are destined for many more years of market-crushing returns.

Read more »

edit CRA taxes
Tech Stocks

TFSA Millionaires Are Learning They Can Still Be Taxed

If you day trade stocks like Shopify (TSX:SHOP) in a TFSA, you may be taxed.

Read more »

Shopping and e-commerce
Tech Stocks

Where Will Lightspeed Stock Be in 5 Years?

Lightspeed stock (TSX:LSPD) continues to be touch and go, so what might happen in the next five years?

Read more »

Technology
Tech Stocks

Here’s Why Constellation Software Is a No-Brainer Tech Stock

Are you looking for tech stocks to add to your portfolio? Constellation Software is a no-brainer!

Read more »

Businessman holding AI cloud
Tech Stocks

2 AI Stocks That Wall Street Likes Better Than Nvidia

NVIDIA (NASDAQ:NVDA) may be trendy but Shopify (TSX:SHOP) has more upside according to Wall Street.

Read more »