NorthStar Gaming inks C$1.5m marketing-led deal with Playtech
FTSE 250 firm to make second financial investment with duo agreeing revenue-share-led partnership
NorthStar Gaming has agreed a marketing-led partnership with Playtech that will see the London-listed firm invest an initial C$1.5m (£897,124) into the firm’s Ontario marketing push.
Under the terms of the deal, Playtech’s initial investment could rise to as much as C$4m, with the capital used to support player acquisition in the Canadian province, beginning in H2 2023 and potentially flowing into Q1 2024.
Playtech will receive a share of revenue from the income generated from the marketing initiatives in which its funds are directly used.
NorthStar has said the contribution “materially increases” its marketing budget, with that increase coming in advance of the firm’s traditional busy period in Q3, when a significant number of American sports resume.
NorthStar Gaming chief executive and founding partner, Michael Moskowitz, welcomed the new investment as further proof of its commitment to the business.
“This investment by Playtech further strengthens our strategic partnership and will immediately fuel growth and further expansion of the NorthStar Bets brand across Ontario,” Moskowitz said.
“The global expertise, with player acquisition and retention that Playtech provides, further enhances the growth of our business and active user base,” the NorthStar Gaming CEO added.
This latest investment into NorthStar by Playtech is its second in less than six months. It sees the firm extend its commercial dealings with the Toronto-listed firm, having previously invested C$12.25m into the business in February.
Playtech owns an estimated 16% of the issued and outstanding common shares belonging to NorthStar, as well as owning warrants giving it the right to boost its position to over 20%.
February’s investment saw the pair agree a 10-year deal under which Playtech provides NorthStar its full technology stack, with NorthStar gaining the right to expand the partnership beyond its native Ontario.
Playtech CFO Chris McGinnis joined NorthStar’s board of directors as part of the deal, with McGinnis acting as the supplier’s representative in the role of non-executive director.