Picking the Best Canadian Casino Stocks

O Canada! The land of endless possibilities! And one of those possibilities might just be making your money make money for you. Yes, today we’re going to take a look at just one wealth generation avenue that could lead to fuller fortunes for you in the future. We’ll be casting our eye over to the Canadian stock markets – and setting our sights on one area in particular: casino stocks.

There will be big losers but even bigger winners

The house always wins? The house always wins! And you can too, if you bet on the right horse in this race (i.e. stocks in the stock market). 

So if you are looking for an investment, then read on to learn more about these handy stocks to have sitting in your portfolio.

How to pick a casino stock purchase

As with any stock purchases, you need to dive into the company history, detailed quarterly updates, any mergers movements, etc. Funny enough Canadian online casino reviews have done this for you, as they have picked the most trustworthy sites for 2021.

It’s also wise to think about the company’s operations from a domestic and global perspective. At the moment, land-based casinos are losing money due to COVID-19 restrictions, whereas online casinos have been experiencing significant growth. Depending on the trajectory of the virus and travel cautions, we may see a return to ‘normal’ for these avenues, or they may be changed forever – there is currently a fair bit of uncertainty.

There are also gambling laws to think about. While some companies have been operating in charted legal territory for many years, others are jumping onto the bandwagon more recently, off the back of changes to US gambling laws, and in anticipation of changes to Canadian gambling laws. For example, acquired by Scientific Games, a previous hot stock pick NYX games can now be found at most popular online casinos servicing the Canadian market and the rest of the world.

Stocks to watch

Great Canadian Gaming Corp (TSX:GC)

The Great Canadian Gaming Corp is listed on the Toronto Stock Exchange and is a bit of an alrounder in the field. This company operates a number of Canadian casinos, including Hard Rock Casino Vancouver, Casino Nova Scotia Halifax, and Hastings Racecourse and Casino. With some of the country’s biggest casino names on its roster and a long history in the game, it’s considered a fairly solid pick. Over the past few months due to COVID-19 the value of the stock has dropped considerably, however we can expect this to pick up again if land-based casinos manage to weather the storm and bounce back.

Gamehost Inc (TSX:GH)

Gamehost Inc is a similar style of company to the Great Canadian Gaming Corp: they own a handful of casino properties, although on a much smaller scale. With four different properties on their books, including Boomtown Casino, this brand is also listed on the Toronto Stock Exchange, at a much smaller market cap.

The Stars Group Inc. (TSX: TSGI)

The Stars Group Inc is one of the biggest names in the online gambling world, lead by their high-performing brand, Poker Stars. The company is listed both on the Toronto Stock Exchange as well as on NASDAQ. If you take a look over the brand’s recent history, you’ll see that they have been slowing building in market value over course of the year since COVID-19 hit. It looks like the brand will be on track for a good year, climbing back to their previous market highs in around June 2018.

Which ones should you pick?

As usual, it’s best to diversify your investments, so picking all land-based casinos or all online-based brands wouldn’t be the best strategic move. Try and mix it up so that you have something of everything – so that you don’t have all your eggs in the one basket. Balance your gambling stock picks with tried and true oil and gas picks in the Canadian market.

WE SAID THIS: Catch a man a fish, and you can sell it to him. Teach a man to fish, and you ruin a wonderful business opportunity.