Investment to Support Rapid Growth and Expansion
Toronto, Ontario–(Newsfile Corp. – June 26, 2023) – NorthStar Gaming Holdings Inc. (TSXV: BET) (the “Company” or “NorthStar“) announces its subsidiary, NorthStar Gaming (Ontario) Inc. (“NorthStar Ontario“),has reached an agreement with Playtech Software Limited (“Playtech“) to strengthen NorthStar Ontario’s marketing and player acquisition strategy through Playtech’s contribution towards the financing of select NorthStar Ontario marketing initiatives (the “Transaction“).
Pursuant to the agreement between Playtech and NorthStar Ontario, Playtech will make an initial contribution of up to C$1.5 million (which can be increased to up to C$4 million) that will directly support NorthStar Ontario’s player acquisition strategy beginning in the second half of 2023 and potentially also the first quarter of 2024. Playtech will be reimbursed and compensated through a share of revenue from the income generated in connection with the marketing initiatives to which Playtech contributed.
The contribution by Playtech materially increases NorthStar Ontario’s marketing budget for the balance of 2023 and is anticipated to accelerate NorthStar Ontario’s player acquisition during the key fourth quarter of 2023, when many North American professional sports leagues resume regular season play.
“This investment by Playtech further strengthens our strategic partnership and will immediately fuel growth and further expansion of the NorthStar Bets brand across Ontario,” said Michael Moskowitz, Chief Executive Officer and a founding partner, NorthStar. “The global expertise with player acquisition and retention that Playtech provides, further enhances the growth of our business and active user base.”
The Transaction is in addition to the previously announced C$12.25 million equity investment received from Playtech plc in connection with NorthStar’s reverse take over completed in March.
The Transaction between Playtech and NorthStar Ontario is exempted from National Instrument 61-101
For more information on NorthStar Ontario, please visit www.northstargaming.ca.
NorthStar Ontario proudly owns and operates NorthStar Bets, a made-in-Ontario casino and sportsbook gaming platform that provides players with a uniquely local, premier user experience. The NorthStar Bets sportsbook provides real-time news, stats, analysis and scores directly in the betting environment along with the most popular online casino games. NorthStar also provides managed services to Spreads.ca, an iGaming site owned and operated by the Abenaki Council of Wolinak.
A Canadian company, NorthStar Ontario is uniquely positioned to become a convergence leader in the intersection of sports media and sports wagering thanks to its partnerships and agreements with leading media companies. NorthStar Ontario is committed to operating at the highest level of responsible gaming standards.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Note Regarding Forward-Looking Information and Statements
This communication contains “forward-looking information” within the meaning of applicable securities laws in Canada (“forward-looking statements”), including without limitation, statements with respect to the following: financial guidance for 2023, expected performance of the Company’s business, expansion into new markets and future growth opportunities and expected benefits of transactions. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and allowing readers to get a better understanding of the Company’s anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates” or “believes”, or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such factors include, among others, the following: risks related to the Company’s business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; and the ability of the Company to implement its business strategies. NorthStar believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Information contained in forward-looking statements in this communication are provided as of the date hereof and NorthStar disclaims any obligation to update any forward-looking statements, whether as a result of new information or future events or results, except to the extent required by applicable securities laws.
For further information:
VP Corporate Development