Ontario-based online casino and sportsbook operator NorthStar Gaming has reported a rise in its year-on-year gross gaming revenue (GGR) for the third quarter. The gambling operator registered C$8.4 million in GGR, up 52.7 percent from last year.
However, the operator also revealed that it is working to secure additional funding to support its long-term growth strategy. NorthStar said it is “confident” about being able to secure the capital. Adding that an update is due in the coming weeks.
The company reported a pre-tax loss of C$3.1 million, an improvement on last year’s C$4.2 million.
This comes despite NorthStar’s total wagers placed through its revenue generating site, Northstarbets.ca, jumping 69.6 percent to hit C$234.0 million. Operating costs for the quarter were cut by 5.2 percent despite a rise in marketing, general and administrative expenses.
“Our consistent revenue growth and improved economies of scale have enabled gross margin to fully cover overhead costs – a significant milestone in our journey toward profitability,” NorthStar chair and CEO Michael Moskowitz (pictured above) said.
“Additionally, marketing expenditures as a percentage of revenue have declined substantially, dropping from two-thirds last year to roughly half year-to-date, further demonstrating our continually improving operational efficiency and strategic focus.”
NorthStar’s enlarged business
The financial year of 2024 will be the first full calendar year of the enlarged NorthStar business after it completed the reverse takeover of Baden Resources. The takeover, which was completed in the first quarter of last year, resulted in the de-listing of Baden common shares from the Canadian Stock Exchange.
Under the arrangement, Baden, which owns Canadian property business Midway Property, combined with NorthStar Gaming Inc and a wholly owned subsidiary of Baden.
In related news, NorthStar Gaming was penalised by gambling watchdog Alcohol and Gaming Commission of Ontario (AGCO) for alleged breaches of the province’s iGaming regulatory framework. The operator has been hit with a C$30,000 ($21,800) fine.
The Commission fined the gambling operator because it allegedly failed to prevent customers outside of Ontario from accessing its NorthStarBets.ca website.
This was a direct breach of existing regulatory frameworks, which define that operators should prevent customers outside the province from accessing their websites “unless they are conducted in conjunction with the government of another province,” as explained by the AGCO.
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