Playtech invests a further C$3m into NorthStar Gaming
FTSE 250 firm further commits to Ontario-licensed firm following last year’s eight-figure investment and marketing partnership deal
Playtech has invested a further C$3m (£1.75m) in NorthStar Gaming, the operator of homegrown Ontario online sportsbook and casino brand NorthStar Bets, and extended its marketing agreements with the firm.
The extended marketing agreement will continue to further NorthStar Ontario’s player acquisition strategy in the province after the pair penned a partnership worth C$1.5m in June 2023.
The new deal has been valued at C$4m and will be provided by the FTSE 250 firm until 31 October 2024.
Under the terms of the agreement, Playtech will be reimbursed and compensated on a revenue share basis on the income generated in connection with the marketing strategy its capital has contributed to.
Aside from the new funding, NorthStar has issued Playtech a C$3m unsecured, interest-bearing promissory note dated 25 April 2024.
The issued note carries an interest of 8% per year, payable in arrears at maturity. It will become immediately payable on the earlier of the date 12 months from 25 April 2024 or the date on which the company or any of its subsidiaries completes additional financing transactions with gross proceeds of at least C$10m.
Michael Moskowitz, chair and CEO of NorthStar, said: “We are very pleased to continue to strengthen our relationship with Playtech, one of the world’s leading gambling technology companies.
“Their ongoing support has been instrumental in helping us to acquire new customers, provide a premium online gaming experience, and fund the expansion of our brand in Ontario and across Canada.”
Playtech initially invested C$12.25m into the operator in February 2023.
The firm owns an estimated 16% of NorthStar’s issued and outstanding common shares and warrants, which gives it the right to increase its shareholding to 20%.
That initial investment saw the duo agree on a 10-year deal under which Playtech provides the operator its full tech stack, with NorthStar gaining the right to expand the partnership beyond Ontario.
As part of the deal, Playtech’s CFO Chris McGinnis joined NorthStar’s board, acting as the supplier’s representative as a non-executive director.