Today, gaming stock Elys Game Technology (NASDAQ:ELYS) is taking off. Currently, shares of ELYS stock are up more than 30% on very heavy volume. Nearly ten times the average daily volume of shares have traded hands in early afternoon trading.
This move is certainly not out of the ordinary for gaming stocks. Various online and physical gambling players have seen valuations take off this year. Investors seem to like the growth markets these companies are targeting, particularly with more jurisdictions lifting gambling bans and allowing for legal sports betting and other forms of gaming.
Today, ELYS stock is jumping on news that the District of Columbia has granted the company a sports betting license. On this news, ELYS stock jumped to a four-month high and has continued higher throughout the day.
Let’s dive more into what this catalyst means for investors. After all, today’s move in ELYS stock appears to price in some significant cash-flow growth over the medium term.
ELYS Stock On the Move Amid Receipt of Gaming License
Sports betting became legal in late 2018 in D.C. This is one of a growing number of jurisdictions where companies like Elys Game Technology can pursue licenses. However, ultimately being granted a license is a whole different story. Various gaming stocks such as Elys have grown in interest among investors of late. With the rise of online gaming plays such as DraftKings (NASDAQ:DKNG), investors who have been early to the party have generally done very well.
Such appears to be the case for investors in ELYS stock. This Canadian gaming-technology provider has been making moves to grow its market share in the U.S. Recently, the company acquired Bookmakers Company US. This deal came with a service agreement for the Washington, D.C., area that reportedly goes into effect later this year.
So, perhaps this gaming license was a foregone conclusion. However, investors looking for growth plays in the gaming sector will like the fact that Elys has made headway in this regard. Should the company be able to open up its technology to new markets, investors hope the sky is the limit with this stock.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.