NorthStar Gaming Reveals Results for the Second Quarter of 2025
NorthStar Gaming Holdings Inc. (TSXV: BET, OTCQB: NSBBF), the Canadian-born casino and sportsbook platform operator, has announced impressive financial results for the second quarter of 2025.
Financial Highlights
In Q2 2025, NorthStar Gaming reported a revenue of $8.5 million, marking a 15% year-over-year increase. The company also achieved a record gross margin of 40.8%, reflecting improved operational efficiency. Profit before marketing expenses increased by 87% to $0.7 million, while marketing expenses were reduced by 16% to $3.1 million.
For the year-to-date (YTD) performance, NorthStar's revenue stands at $16.4 million, a 23% increase from the previous year. The gross margin for YTD 2025 was $6.5 million, a 39% increase from YTD 2024, with a gross margin percentage of 39.7%.
General and administrative expense for YTD 2025 was $5.2 million, an 8% increase from YTD 2024, primarily due to one-time expenses associated with the restatement of prior financial results and disclosure review. Managed services revenue in Q2 2025 was $0.9 million, a 125% increase from Q2 2024.
Growth Strategy
NorthStar Gaming is focusing on several strategic initiatives to drive growth and expansion. These include product innovations, market expansion, strategic partnerships, and cost management.
The company has enhanced its NorthStar Bets online betting platform with new features such as a strengthened casino section, NorthStar Elite Blackjack, and Sports Insights 2.0. NorthStar aims to expand its presence in the Canadian gaming market, particularly targeting Alberta's substantial gaming sector.
Strategic partnerships, like the one with Playtech, are crucial for enhancing its offerings and market position. NorthStar emphasizes disciplined cost management and operational efficiency to sustain profitability and competitiveness.
Sports Insights Feature
The sportsbook stands out with its exclusive Sports Insights feature, which provides betting guidance, stats, and scores tailored to a premium audience. NorthStar Bets Casino offers a curated selection of popular games for a premium user experience.
Forward-Looking Information
A cautionary note regarding forward-looking information and statements is included in the press release. A corporate update webinar will be held on August 14, 2025, for investors and interested parties to register.
Stock Options Cancellation
Stock options exercisable to acquire an aggregate of 6,026,779 common shares have been cancelled by the company and certain directors, officers, and consultants.
Contact information for Company Contact and Investor Relations are provided for those seeking further information. The financial results for the three- and six-month periods ended June 30, 2024 have been restated in the company's financial statements to include additional merchant fees and player bonus expenses.
[1] - Financial Statements and the corresponding Management's Discussion and Analysis (MD&A) for Q2 2025 are available on SEDAR+ at www.sedarplus.ca and on the Company's corporate website at www.northstargaming.ca.
[2] - Information taken from the company's press release dated August 1, 2025.
[3] - Year-over-year increase is calculated based on the Q2 2024 results restated to include additional merchant fees and player bonus expenses.
[4] - Information taken from the company's press release dated July 29, 2025.
SportsInsights, the exclusive betting guidance feature on NorthStar Bets, caters to a premium audience with tailored stats, scores, and tips. NorthStar Gaming, the operator of the casino and sportsbook platform, is focusing on product innovations, market expansion, strategic partnerships, and cost management to drive growth and expansion in the gaming industry.
