One Wall Street analyst has rated Esports Entertainment Group (GMBL -9.56%) stock a buy and predicts its stock will double.
Esports Entertainment is "the only eSports-dedicated U.S. wagering platform," according to Maxim analyst Jack Vander Aarde, who initiated coverage of the platform with a buy rating and a $30 per share price target, which was almost double its $15.49 per share closing price on Thursday.
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The online esports gambling platform partnered with numerous professional sports teams across all major league sports to become their official esports tournament partner. Vander Aarde notes Esports applied for its first U.S. gaming license application with the New Jersey Division of Gaming Enforcement (DGE), which is expected to be approved next month.
It was a smart choice of where to plant its flag. New Jersey has become the sports betting capital of the country and is close to seeing its first month with a $1 billion handle, or how much gamblers bet. Online sports betting routinely represents virtually all of the state's total. Esports, or competitive video game events, could tap deep into that market.
New Jersey's lower house unanimously passed a bill last year to allow esports betting and the upper chamber is expected to approve it soon. The DGE in favor of allowing it, saying, "betting on esports not only provides more variety for sports wagering enthusiasts, but also makes New Jersey more attractive to the innovative companies that drive this growing industry."
With Esports Entertainment focused on the space and ready to hit the ground running, it could even make for an attractive takeover candidate by a larger player.
