NorthStar Gaming reported a 64% year-over-year increase in revenue for the three months ending March 31, 2024, driven by a record quarterly betting volume.
For the first quarter of 2024, NorthStar Bets, the company’s Ontario-based casino and sportsbook platform, recorded CA$218 million ($159.5 million) in wagers and gross gaming revenue of CA$7 million ($5.1 million), reflecting year-over-year increases of 56% and 59%, respectively.
The Toronto-based company’s total net revenue reached CA$5.9 million ($4.3 million), up from CA$3.6 million ($2.6 million) in Q1 2023. Gross margin nearly doubled to CA$2.2 million ($1.6 million) from CA$1.2 million.
These results follow a strong Q4 2023, in which NorthStar posted a quarterly revenue record of CA$6.5 million ($4.7 million), more than double that of Q4 2022. For the full year of 2023, NorthStar Bets’ handle and gross gaming revenue both more than tripled compared to 2022.
Since its inception, NorthStarBets.ca, managed by subsidiary Slapshot Media Inc. and owned by the Abenaki Council of Wolinak, has generated over CA$1 billion ($731.7 million) in total wagers.
In its earnings release, NorthStar Gaming attributed the Q1 2024 uptick to increased user acquisition at a lower cost, with active players rising 42% year-over-year and customer acquisition costs dropping by 9%.
“In the first quarter we continued our pattern of strong year-over-year growth, highlighted by record total wagers,” said Michael Moskowitz, Chair and CEO of NorthStar.
“Our premium customer experience and growing brand awareness are propelling higher player retention, strengthened loyalty and increased player values. These positive trends enable us to spend our marketing dollars more efficiently, contributing to improved operating leverage as the business scales.”
The company also highlighted its strategic marketing agreement with Playtech, which provides managed services valued at up to CA$4 million ($2.9 million) through October 31, 2024, and an additional $3 million ($2.1 million) in short-term financing.
“March was the strongest month of Q1, and we have maintained that momentum into the second quarter,” Moskowitz said. “Our team is making regular improvements to our service offering, such as the recent launch of a VIP Elite strategy aimed at the most active players who drive a meaningful share of our results.”
“We have some exciting demand creation activities planned for the coming months along with further innovations to our platform and content. We remain focused on unlocking value for our stakeholders and are excited about the opportunities ahead of us in 2024.”
NorthStar’s sportsbook is powered by Kambi, with other partners in the Ontario market including Sportradar and IGT for betting content. The company has also enhanced its ‘Sports Insights’ content and launched a new VIP Elite membership program. Future plans include more branded table games and online bingo offerings.
Additionally, NorthStar announced the appointment of Chin Dhushenthen as its permanent CFO. Dhushenthen, who has been with NorthStar since 2021, previously served as interim CFO and VP of finance and compliance.