NorthStar Gaming Holdings Inc. Reports Fourth Quarter and Year-End 2022 Results for NorthStar Gaming Inc.

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Fourth Quarter Growth in Wagers and Gross Gaming Revenue of 95% and 61% Respectively Over Third Quarter

Toronto, Ontario–(Newsfile Corp. – April 27, 2023) – NorthStar Gaming Holdings Inc. (TSXV: BET) (“NorthStar” or the “Company”) today released the financial results for its wholly-owned subsidiary, NorthStar Gaming Inc. (“NSGI”) for the fourth quarter and full year ended December 31, 2022. These financials cover a period that predates the acquisition of NSGI by the Company.

Highlights for the fourth quarter ended December 31, 2022:

  • Total wagers1 were $112.3 million in Q4 2022, an increase of 95% compared to $57.6 million in Q3 2022.
  • Gross Gaming Revenuewas $4.1 million in the fourth quarter, an increase of 61% over Q3 2022.
  • Gross profit was $1.0 million in the fourth quarter, an increase of $0.7 million from $0.3 million in Q3 2022.
  • On October 3, 2022, NSGI issued subscription receipts for gross proceeds of $1.0 million, bringing the total in subscription receipts from the private placements on October 3, 2022 and September 15, 2022 to $5.1 million.
  • On November 2, 2022, NSGI announced that it had been named an Authorized Gaming Operator of the National Basketball Association (NBA) which provides NBA bettors with an immersive gaming experience featuring real-time NBA data as well as improved navigation within the NorthStar Bets platform.
  • On December 19, 2022, NSGI completed a $12.25 million Strategic Investment from Playtech plc by way of convertible debenture.

Highlights for the year ended December 31, 2022:

  • Total wagers were $184.7 million in 2022 reflecting wagering from May 9, 2022 through December 31, 2022.
  • Gross Gaming Revenue was $7.3 million in 2022.
  • Gross profit was $1.2 million in 2022.
  • On May 9, 2022, NSGI launched its premier online casino and sportsbook in Ontario offering consumers a uniquely local, content and insight driven platform, plus the most popular casino games.
  • On June 30, 2022, the Company and NSGI entered into a business combination agreement to complete a reverse takeover transaction.
  • During the summer of 2022, NSGI Company launched the NorthStar Bets app, which is available for both Apple and Android users.
  • On September 15, 2022, NSGI announced that it had entered into a new official data partnership with Genius Sports Limited, the official data, technology and broadcast partner that powers the ecosystem connecting sports, betting and media.

Subsequent events to Fiscal 2022:

  • On March 3, 2023, the Company completed its acquisition of NSGI by way of a reverse takeover and on March 8, 2023, NorthStar Gaming Holdings Inc. was listed on the TSX Venture exchange and trades under the ticker symbol “BET”.
  • On April 24, 2023, the Company completed a Share Purchase Agreement for100% of Slapshot Media Inc., a leading Canadian iGaming marketing and managed services company that specializes in providing managed services to Spreads.ca. The acquisition opens the entire Canadian market to the NorthStar brand, materially expanding the addressable market available to NorthStar.

“The introduction of the NorthStar Bets content-rich user experience paired with a world-class online casino continues to be extremely well received by consumers and drove sustainable wager growth and momentum across key business indicators in the fourth quarter of 2022 and into the first quarter of 2023,” said Michael Moskowitz, Chief Executive Officer and a founding partner of NSGI. “We are strategically focussed on continuing to grow our player acquisition while looking for opportunities to expand and introduce the NorthStar Bets brand to new players across Ontario and other jurisdictions.”

Additional Information
For additional information, please refer to NSGI’s audited consolidated financial statements for the year ended December 31, 2022. This document will be filed today on SEDAR and are available on the Company’s corporate website at https://northstargaming.ca

About NorthStar
NorthStar 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.

A Canadian company, NorthStar 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 is committed to operating at the highest level of responsible gaming standards.

Non-IFRS measures

This news release makes reference to certain non-IFRS measures, including wagers and gross gaming revenue. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures and metrics are used to provide investors with supplemental measures of our operating performance and liquidity and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation.

1Wagers is calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end.

2Gross gaming revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.

Forward-looking statements
This communication contains “forward-looking information” within the meaning of applicable securities laws in Canada. Forward-looking information may relate to future events or future performance of NorthStar. All statements in this communication, other than statements of historical facts, with respect to NorthStar ‘s objectives and goals, as well as statements with respect to its beliefs, plans, objectives, expectations, anticipations, estimates, and intentions, are forward-looking information. Specific forward-looking statements in this communication include, but are not limited to: expectations regarding certain of NorthStar ‘s future results and information, including, among other things, revenue, expenses, revenue growth, capital expenditures, and operations; risk factors relating to national or international economies (including the impact of COVID-19), and other risks present in the jurisdictions in which NorthStar, its customers, its partners, and; statements with respect to expected use of cash balances; continuation of prudent management of working capital; source of funds for ongoing business requirements and capital investments; expectations regarding sufficiency of the allowance for uncollectible accounts; analysis regarding sensitivity of the business to changes in exchange rates; impact of recently adopted accounting pronouncements; risk factors relating to intellectual property protection and intellectual property litigation; and, expectations concerning any remediation efforts to NorthStar ‘s design of its internal controls over financial reporting and disclosure controls and procedures. Often, but not always, forward-looking information 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 information. NorthStar believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information included in this discussion and analysis should not be unduly relied upon. Information contained in forward-looking statements in this communication is 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:
NorthStar Gaming
Ben Powell
VP Corporate Development
Ben.powell@northstargaming.ca