Playtech invests C$12.25m into NorthStar Gaming
FTSE 250 firm will own 16% of the Ontario-based operator following TSX Venture Exchange listing
Playtech has invested C$12.25m (£7.57m) in NorthStar Gaming – the operator of homegrown Ontario online sportsbook and casino brand NorthStar Bets – and extended its commercial arrangements with the firm.
The investment has been made through a convertible debenture that will convert into equity and warrants in connection with NorthStar’s reverse takeover of Baden Resources.
When the reverse takeover is complete, NorthStar will be trading on Canada’s TSX Venture Exchange, and Playtech will own 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%.
This new investment extends the previous software and services agreement the pair struck December 2021. That deal saw Playtech provide NorthStar with a suite of technology solutions, and the pair have now entered into a 10-year extension to that agreement and the right to expand the deal beyond Ontario.
On the back of this investment, Playtech CFO Chris McGinnis will join the board of directors at NorthStar, acting as the company’s representative in the role of non-executive director.
Mor Weizer, CEO of Playtech, said: “We are excited to expand our partnership with NorthStar and build on the early success of our existing software and services agreement.
“Playtech has extensive experience of what it takes to succeed in newly regulated markets, as demonstrated by the group’s strategic agreements in other markets across the Americas,” Weizer added.
“We’ve been impressed by NorthStar’s unique business model and product offering, and look forward to supporting them in their mission to become the market-leading online gaming platform in Canada.”
Michael Moskowitz, CEO of NorthStar, added: “Playtech’s unparalleled expertise in the gaming industry will help NorthStar accelerate our growth and rapidly expand our user base.
“With the additional investment, we look forward to expanding our market share across Ontario and further enhancing our premium, content-driven experience for consumers.”