Q1 Results for NorthStar Point to Revenue Growth and Margin Expansion
Posted on: May 29, 2025, 09:11h.
Last updated on: May 29, 2025, 09:11h.
- NorthStar celebrating three years in business
- Q1 2025 financial results shows 32% year-over-year revenue increase
- 15% increase in casino game content
NorthStar Gaming Inc. today announced its Q1 2025 financial results, for the three months ended March 31, 2025, highlighted by a 32% year-over-year revenue increase, and gross margin up 58% compared to Q1 2024.
32% Revenue Increase
NorthStar owns and operates NorthStar Bets, a Toronto-based casino and sportsbook platform. NorthStar renewed its Internet Gaming Operator license with the Alcohol and Gaming Commission of Ontario in February, with the license expiring next April.
“We are pleased to begin 2025 with another quarter of strong year-over-year growth, with revenue increasing by 32% and gross margin up 58% over Q1 2024,” said Michael Moskowitz, Chair and CEO of NorthStar.
Canadian gaming: Alberta Expansion
At the same time, we continue to effectively manage our major operating expense items which are decreasing as a percentage of revenue. Our results are being driven in part by ongoing product and promotional innovations that reinforce our premium positioning.”
The company reported revenue of CAD $7.8 million in Q1 2025, and gross margin of CAD $3.0 million.
Marketing expense was CAD $4.1 million, an 11% year-over-year increase, and was 52% of revenue.
Revenue at $7.8 Million
The company was registered as an online gaming operator in Ontario on April 14, 2022, 10 days after the market went live. There currently are 49 licensed operators in Ontario and 83 gaming websites.
Last month iGaming Ontario reported CAD $3.2 billion in gross gaming revenue for the 2024-25 fiscal year (April 1, 2024, to March 31, 2025), the market’s third year. Casino gaming revenue was $2.4 billion, a 36% increase over 2023-24.
Operator highlights during Q1 included an increase in the number of games offered on its casino platform – by 15%, to more than 1,800 games. The company introduced the new Spring Tournament Series, online tournaments spanning live blackjack, slots and sports betting.
More Casino Games
NorthStar Bets Blackjack VZN went live in March, a multiplayer blackjack game with the feel of live blackjack.
The company reported the highest customer retention rate in its history in Q1 2025.
We anticipate another year of solid top line growth and margin expansion in 2025, supported by our recently strengthened balance sheet. Major expense items should continue to decline as a percentage of revenue as we realize further operating leverage through the scaling of the business,” said Moskowitz.
“We expect the managed services business to help drive revenue growth this year. Looking ahead, the Alberta government recently took another step forward in establishing a regulatory regime to become the second Canadian province to license online gaming as early as the end of this year, and we eagerly await further details.”
No comments yet