Peel Hunt has rated Gaming Realms PLC (AIM:GMR, OTCQX:PSDMF) as a buy following the online gambling company's granting of a license in Ontario, which boosted the group’s share price.
The broker said Ontario’s long winter nights and large, relatively wealthy population boded well for the gambling market in the state in advance of the opening of the regulated iGaming market on 4 April.
Peel Hunt pointed out Gamin Realm had existing commercial partnerships with most of the expected key players in the province, with revenue accumulated so far in 2022 running ahead of management expectations.
“Ontario has a relatively wealthy adult population of c.12m and long winter nights, which makes it a promising online casino gaming market,” the broker said.
The group’s shares were up more than 16% this morning as it was granted an iGaming licence for the Canadian province.
Peel Hunt gave Gaming Realms a price target o 60p, 140% upside on yesterday’s closing price.
“Our approval marks an important step in the group's growth trajectory as we focus on expanding and strengthening our global presence and bringing our hugely popular and innovative Slingo content to new audiences," Michael Buckley, executive chairperson, said this morning following the approval announcement.
"Ontario should be a bigger market for Gaming Realms than any of the US states that have regulated so far, so we are very excited to have been awarded our supplier license in this territory."
Shares in Gaming Realms were up 16.99% to 28.43p by 11:39 GMT this morning.