Entertainment comes in various forms. Within this, a much overlooked industry has been the casino and gaming market. Although Amaya (TSX: AYA) dominates this space with close to $1 billion in sales, the following small caps, in our opinion, have great long-term growth potential.
Great Canadian Gaming Corp. (TSX: GC) – $23.69
Casinos & Gaming
Great Canadian Gaming Corporation operates gaming, entertainment and hospitality facilities. The Company has approximately 17 gaming properties, consisting of three community gaming centers, four racetracks and 10 casinos, including one with a Four Diamond resort hotel. In British Columbia, it operates four casinos; one thoroughbred racetrack; a standardbred racetrack; three community gaming centers; a resort with two hotels, a conference center and a marina; two multi-purpose show theatres, and a range of restaurants.
- Market Cap: $1,647,561,924
- Revenues: $446,500,000
- EV/Revenue: 4.0x
Intertain Group Ltd. (TSX: IT) – $16.24
Internet Services
The Intertain Group Limited, formerly Aumento Capital II Corp, is a Canada-based online gaming company that provides entertainment to a global consumer base. It offers casino, bingo and poker games to its customers using the InterCasino, InterPoker, Costa and other brands. The InterCasino and InterPoker gaming platform is supplied by Amaya Gaming Group Inc. and its bingo offering operates off of the Dragonfish platform, which is a bingo software service provided by 888 Holdings plc.
- Market Cap: $1,174,902,938
- Revenues: $40,099,360
- EV/Revenue: 30.2x
Pollard Banknote Ltd. (TSX: PBL) – $7.50
Casinos & Gaming
Pollard Banknote Limited (Pollard) is a Canada-based company, primarily involved in the manufacture and sale of lottery, and gaming products. The Company is engaged in the production of instant tickets and provides related programming, design and marketing support. Pollard also manufactures pull-tab tickets and bingo paper, and provides lottery management services, including warehousing and distribution.
- Market Cap: $176,150,247
- Revenues: $194,471,000
- EV/Revenue: 1.3x
IMPERUS Technologies Corp. (TSXV: LAB) – $0.41
Software
Imperus Technologies Corp., formerly ISIS Lab Corp, is a Canada-based company social gaming software solutions provider, powering the application of the social graph and the gamblification of the greatest games. The Company develops social gaming tools and services to provide an immersive social gaming experience by merging a flexible gamblification engine with the first regulated social gaming platform, providing the world’s greatest games in an exciting and immersive environment.
- Market Cap: $64,999,496
- Revenues: $359,800
- EV/Revenue: 116.6x
Deq Systems Corp. (TSXV: DEQ) – $0.19
Casinos & Gaming
DEQ Systems Corp. (DEQ) is a Canada-based customer centric company that offers breed table game technology related products to the gaming industry. The Company provides table game bonusing technology, table games, table game results tracking and jackpot connectivity solutions to more than 300 casinos in about 30 countries. Its principal activities include the development of intellectual property related to table game bonusing, IP license management, as well as the lease and sale of table game bonusing technology. The Company’s business model is based on recurring revenue from intellectual property licensing and product leasing. Its products are installed directly by DEQ or through a partner/distributor. The Company has a patent portfolio of more than 20 patents recognized in approximately 50 countries.
- Market Cap: $13,586,979
- Revenues: $7,540,060
- EV/Revenue: 1.6x
