NorthStar Gaming Holdings Inc. has shared impressive financial results for Q3 2024, with significant year-over-year growth in wagers, revenue, and margin. The company is positioning itself for further expansion, including future plans for Alberta.
In a recently released financial report, NorthStar Gaming revealed that wagers placed at Northstarbets.ca reached CA$234 million (approximately US$167 million) in Q3 2024, marking an extraordinary 69% year-over-year increase. The surge in wagers helped push total revenue to CA$6.8 million (US$4.8 million), a 45% increase compared to the same period last year. This growth reflects the company’s strong performance in Ontario’s iGaming and sports betting sectors.
Significant Growth in Revenue and Margins
The surge in wagers also led to a notable increase in gross margin. NorthStar reported a 63% year-over-year increase in gross margin, which reached CA$2.7 million (US$1.9 million) for Q3. This indicates a solid financial position for the company, underpinned by an efficient operational model.
Michael Moskowitz, Chair and CEO of NorthStar Gaming, expressed his satisfaction with the company’s performance, highlighting that the increased revenue and operational improvements have allowed NorthStar to fully cover overhead costs. This achievement is seen as a crucial milestone in the company’s path toward profitability.
“Our consistent revenue growth and improved economies of scale have enabled gross margin to fully cover overhead costs, a significant milestone in our journey toward profitability,” Moskowitz stated. He also noted that marketing expenditures as a percentage of revenue have dropped from two-thirds of revenue last year to approximately half year-to-date, further underscoring the company’s enhanced efficiency and strategic focus.
NorthStar’s Path to Expansion
While NorthStar Gaming celebrates its Q3 growth, the company is also looking ahead. With plans to expand into Alberta once the market opens in 2025, the company is securing additional financing to support its growth strategy. This expansion represents a strategic move for the company to broaden its footprint across Canada and tap into new markets.
In the interim, NorthStar continues to strengthen its presence in Ontario’s competitive iGaming market. The company recently launched a high-stakes blackjack championship with a prize pool of CA$100,000, continuing to engage players and build brand awareness.
Challenges and Regulatory Scrutiny
Despite its successes, NorthStar Gaming has faced some regulatory challenges. In October 2024, the Alcohol and Gaming Commission of Ontario (AGCO) fined NorthStar Gaming CA$30,000 for failing to ensure its website, NorthStarBets.ca, was accessible only to players in Ontario. The fine also stemmed from other violations, reflecting the stringent oversight in Ontario’s gambling market. However, NorthStar has made it clear that it is committed to addressing these concerns and maintaining compliance with all regulatory requirements.
Looking ahead, NorthStar’s ability to navigate regulatory landscapes and maintain growth momentum will be key to its long-term success.
