Toronto, ON – NorthStar Gaming Holdings Inc. reported third-quarter revenue of CAD $6.9 million, a 4% year-over-year increase, underscoring the company’s focus on product diversification and customer acquisition in Ontario’s competitive iGaming market.
Financial Performance
- Revenue: CAD $6.9 million, up 4% from CAD $6.6 million in Q3 2024
- Gross Margin: CAD $2.4 million, a 14% increase from CAD $2.1 million last year
- Operating Profit (pre-marketing/other expenses): CAD $0.2 million, a turnaround from a CAD $0.5 million loss in Q3 2024
- Marketing Spend: CAD $2.3 million, down 21% year-over-year, representing 31.6% of revenue versus 39.4% in Q3 2024
- G&A Expenses: CAD $2.2 million, a 16% decrease from CAD $2.6 million in Q3 2024
Chair and CEO Michael Moskowitz noted, “We maintained our track record of year-over-year growth in both revenue and gross margin in the third quarter. Our operational improvements are enhancing the player experience while reducing expenses, strengthening the fundamentals of the business.”
Strategic Initiatives
- Casino Lobby Upgrade: Phase 1 of a redesigned lobby launched in Q3, prioritizing top-performing titles.
- Content Expansion: Introduction of The Boost, a standalone platform featuring original casino and sports betting content aimed at Canadian audiences. The initiative is designed to broaden reach via search and social channels and build brand awareness ahead of a planned Alberta market entry in 2026.
Moskowitz added, “From a business standpoint, The Boost will help us acquire new customers and expand our footprint as we prepare for Alberta’s regulated market.”
Market Context
Ontario’s iGaming sector continues to surge, with October wagers surpassing CAD $9.2 billion – an 8% increase month-over-month – and gross gaming revenue hitting a record CAD $367.7 million, up 12% from September. With 48 licensed operators and 82 active websites, competition remains intense.
Outlook
NorthStar expects more moderate top-line growth in 2026, driven by enhancements to the player experience and disciplined allocation of marketing and operating expenses. Moskowitz emphasized that the company’s strategy is focused on balancing acquisition and retention investments with financial resources and evolving market conditions.
