NorthStar Gaming Holdings has successfully closed on $10.3 million in financing. The gambling technology company Playtech provided the lion’s share of funding.
"This injection of capital will strengthen our balance sheet and fund our continued growth."
- NorthStar chair and CEO Michael Moskowitz
NorthStar is a Canadian-based online sportsbook and casino provider. The company plans to use the proceeds from this recent funding round to expand across Canada and for general working capital. The deal allays concerns raised by NorthStar’s Q2 earnings report, where it stated its resources were not sufficient to fund its business over the next year without additional financing.
“This injection of capital will strengthen our balance sheet and fund our continued growth,” said NorthStar chair and CEO Michael Moskowitz. “In particular, the Canada-wide re-branding of Spreads.ca into NorthStarBets.com is expected to supplement the strong organic growth we continue to deliver in our initial market."
Last month, NorthStar announced plans to launch online betting sites across Canada. In May 2022, the company debuted its NorthStarBets platform. It now plans to offer NorthStarBets.com in every Canadian province and territory. By 2026, NorthStar estimates Canada’s online sports betting and iGaming market will reach $8.5 billion.
Playtech Ups its Stake
Playtech was the primary investor in this latest NorthStar offering, but it was not Playtech’s first investment in the Canadian gaming company. In February, Playtech provided $12.25 million to NorthStar in exchange for a convertible debenture. Playtech’s participation in the two funding rounds now gives it roughly 27.5% of NorthStar’s outstanding common shares on a non-diluted basis, or 48.4% on a partially diluted basis.
Along with its ownership stake, Playtech also has the right to nominate up to four NorthStar board members. So far, it has nominated Chris McGinnis, Playtech’s CFO, and Alex Latner, Playtech’s General Counsel. Playtech retains the right to nominate two more directors to NorthStar’s board.
