NorthStar Gaming Holdings Inc. is reporting revenue growth of 240% for its first full year of operation.
“We delivered very strong growth in our first full year of operations, with revenue and customers increasing sequentially in every quarter,” said Michael Moskowitz, Chair and CEO of NorthStar.
The financial results were released for the year ending on Dec. 31, 2023. Revenue, including managed-service fees, net of bonuses, promotional costs, and free bets, was $19.4 million, an increase of 240% over $5.7 million in 2022. Ontario’s regulated igaming market went live April 4, 2022.
NorthStar Gaming Holdings Inc. owns and operates NorthStar Bets, a made-in-Ontario casino and sports-betting platform.
Total wagers at Northstarbets.ca were $648.8 million in fiscal year 2023, an increase of 251%, compared to $184.7 million in 2022. Gross gaming revenue was $22.5 million in 2023, an increase of 208% over $7.3 million in 2022.
NorthStar Bets has now exceeded $1 billion in total wagers since the launch of the platform in May 2022.
“Key accomplishments during the year included the public listing of our shares, numerous product innovations to enhance our online-betting platform, a strengthening of strategic partnerships, implementation of a marketing plan that has yielded an excellent return on investment, and the Slapshot Media acquisition, which has enabled us to expand our addressable market through a First-Nations managed-services arrangement,” Moskowitz said.
“Our financial results and KPIs are beginning to demonstrate the strength of our business model. We have the people and systems in place to support considerable expansion. As we scale the business, we expect to realize operating leverage as revenue continues to grow faster than expenses.”
NorthStar Gaming Holdings also reported Q4 financial highlights: total wagers of $213.3 million (an increase of 90% compared to $112.3 million in Q4 2022); revenue, including managed service fees, net of bonuses, promotional costs, and free bets, of $6.5 million (an increase of 103% compared to $3.2 million in Q4 2022), and gross gaming revenue at Northstarbets.ca of $7.6 million in Q4 (an increase of 85% compared to $4.1 million in Q4 2022).
“NorthStar is very well positioned to build on our momentum in 2024,” said Moskowitz in a statement. “We expect to grow the managed-services business we acquired with the Slapshot Media transaction. Ongoing innovation in both our casino and sportsbook offerings, as well as enhancements to our content vertical, will help continue to deliver a compelling player experience. We will maintain our focus on operational excellence, prioritizing customer service and retention as a core aspect of our premium positioning.
“NorthStar is a rapidly growing company in a relatively new sector with a lot of runway ahead. We have a differentiated offering and, as a locally based company, a distinct familiarity with the Canadian market. We are small and nimble enough to introduce innovation to our platform, while at the same time having access to world-leading technology and services through our committed partners. Our business model is gaining traction and has the potential to deliver strong returns.”
