Canadian Esports Stocks: 3 Biggest Companies in 2022

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The esports industry has found an ideal market for growth in Canada. These top Canadian esports stocks are leading the charge.

Canada’s role in esports is on the rise. It's home to 900 studios employing 28,000 game developers, and the gaming sector contributed C$5.5 billion to the country's gross domestic product in 2021.

The nation hosts three important arenas in the worldwide esports circuit, with OverActive Media (TSXV:OAM,OTCQB:OAMCF) planning to open a fourth 7,200 seat arena in Toronto by 2025.

Notably, Canada’s esports industry is attracting government funding, with the province of Ontario investing C$1 million in a post-secondary scholarship program aimed at supporting innovation in this growing segment.

In a gaming report, Newzoo states that the esports market is “massive and innovative, and it’s only due to grow and innovate even further.” Its analysis shows gaming revenues worldwide could surpass US$222.6 billion by 2024.

Esports investment is growing as well, spurred on by the diversification of revenue in the gaming sector — add-ons, expansions, in-game purchases and monthly subscriptions have all created new revenue streams. The rise of live-streaming games and league tournaments are also key factors driving esports market growth.

While the US and Asian esports industries are among the largest worldwide, the impact of Canadian esports stocks and the country’s esports industry are far from insignificant.

“The Canadian capital markets have played a fundamental role in contributing to the global esports boom,” according to Evan Kubes, president and co-founder of MKM Group. “Similar to what happened in cannabis and blockchain, many esports companies — both internationally and domestically — are taking advantage of the CSE and TSXV, which afford easy accessibility to the public markets.”

Here the Investing News Network looks at the three top Canadian esports stocks based on market cap. The list below was generated using TradingView’s stock screener on August 30, 2022.

1. Enthusiast Gaming Holdings (TSX:EGLX)

Company Profile

Market cap: C$260.68 million; current share price: C$1.73

First on this list of top Canadian esports stocks is Enthusiast Gaming, a digital media company that is focused on building the largest gaming media platform. While the US is its biggest audience and revenue source, Enthusiast Gaming reaches more than 300 million gamers and esports fans on a monthly basis through its gaming communities across YouTube, as well as brands and gaming websites.

The company’s Q2 2022 revenue came in at C$51.1 million, up by 38 percent from the same period in 2021. Enthusiast Gaming had 258,000 subscribers as of the end of June 2022.

2. East Side Games Group (TSX:EAGR)

Company Profile

Market cap: C$170.41 million; current share price: C$2.09

The next top Canadian esports stock is East Side Games Group, a free-to-play mobile game group whose proprietary Game Kit software platform allows creators to deliver engaging mobile gaming experiences.

The company has a large portfolio of original and licensed intellectual property mobile games, including The Office: Somehow We Manage, RuPaul's Drag Race Superstar, Bud Farm: Idle Tycoon, Cheech & Chong Bud Farm, It's Always Sunny: The Gang Goes Mobile and Trailer Park Boys: Greasy Money.

East Side Games reported US$29.7 million in Q2 2022 revenues, up 32 percent over its Q2 2021 numbers. In May, the esports firm's Dragon Up mobile game became available to play exclusively on Netflix (NASDAQ:NFLX).

3. GameSquare Esports (CSE:GSQ)

Company Profile

Market cap: C$39.1 million; current share price: C$0.16

Closing out this list of top Canadian esports stocks is GameSquare Esports, an international gaming and esports company involved in acquisitions in the sports and entertainment sectors. The company has built an asset portfolio that includes Code Red Esports, an esports talent agency serving the UK; GCN, a digital media company focused on gaming and esports audiences in Los Angeles; NextGen Tech (doing business as Complexity Gaming), a leading esports organization operating in the US; Swingman (doing business as Cut+Sew and Zoned), a gaming and lifestyle marketing agency based in Los Angeles; and Fourth Frame Studios, a multidisciplinary creative production studio.

Gamesquare reported Q2 2022 revenues of US$6.7 million, up 30 percent over the previous quarter. In August, the company increased its 2022 revenue guidance by 20 percent to a range of US$27.5 million to US$30 million.

This is an updated version of an article first published by the Investing News Network in 2019.

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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.