NorthStar Gaming also reported 240% revenue growth for the full year 2023 when it released its year-end results on Monday.
The company owns and operates the NorthStar Bets sportsbook, a made-in Ontario casino and sportsbook gaming platform that prides itself on providing players with a uniquely local, premier user experience. NorthStar Bets launched in May 2022, and the overall handle has now surpassed $1 billion.
NorthStar generated $19.4 million in total revenue in 2023, booking a significant 240% year-over-year increase compared to 2022’s $5.7 million. Gross gaming revenue attributed to NorthStarBets.ca was $22.5 million, a 205% increase over the $7.3 million in 2022.
The company enjoyed sizable gains in its gross margin figures. Gross margin skyrocketed 492% year-over-year from $1.2 million in 2022 to $7.1 million in 2023, representing 36% of revenue compared to 21% of revenue in 2022.
“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 Canadian sportsbook and iGaming operator projected massive growth for 2023 when it released its preliminary year-end results in January, with an expectation that revenue would jump from $5.7 to $19.5 million. Although it fell just short of that expectation, a 240% YoY boost is still promising, with Moskowitz adding that the company’s “financial results and KPIs are beginning to demonstrate the strength of our business model.”
Momentum
NorthStar delivered such significant year-over-year improvements in FY 2023 while also achieving a 31% decrease in cost per acquisition of a customer. The company made some major moves last year that it hopes to build more momentum within 2024.
It launched a VIP Rewards strategy to help secure the loyalty and satisfaction of its most active players.
Branded studios were introduced for select live dealer games to prominently showcase the NorthStar Bets brand.
Notably, NorthStar issued common shares of its stock, which commenced trading on the US-based OTCQB Venture Market in March 2024 under the symbol NSBBF.
Moskowitz pointed to growth within the managed services business through its subsidiary Slapshot Media which provides managed services to NorthStarBets.com. He also noted how 2023 saw the continued strengthening of NorthStar’s casino vertical, which surpassed 600 games covering all major categories and curated from leading vendors worldwide. These two segments look to be catalysts for a strong 2024:
“NorthStar is very well positioned to build on our momentum in 2024. 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 unique content vertical, will help continue to deliver a compelling player experience.”
The company also announced enhancements to its fully integrated content vertical in 2023, with “Sports Insights 2.0” including a redesigned home page, smoother user experience, more dynamic “always on” content, and additional statistics.
“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.”
