Playtech Renews Ontario Deal with NorthStar: Strengthening Market Presence
Jake Sanford
In the competitive landscape of gambling technology, Playtech Software Limited has reinforced its alliance with NorthStar Gaming Holdings’ Ontario operation by injecting CA$3.0 million in interim funding. This move not only strengthens the bond between the two entities but also lays the groundwork for further penetration of the Ontario market through strategic marketing efforts aimed at boosting NorthStar’s customer base.
The agreement, which originally took shape the previous year, has paved the way for NorthStar Ontario’s notable expansion, courtesy of Playtech’s marketing prowess and a $4.0 million investment in services. As this partnership enters its next phase, Playtech continues its support with a renewed commitment valued at the same figure, planning to steer the collaboration toward continued financial growth until the close of October.
Financing Boost for NorthStar
NorthStar has secured a financial injection through a $3.0 million promissory note from Playtech, a prominent tech entity in the gambling industry. This note is unsecured and attracts an annual interest rate of 8.0%, with the interest payable upon maturity. Here are the key points:
- The funding is aimed at driving NorthStar’s continued growth and supporting its operational initiatives.
- Michael Moskowitz, the company’s CEO, emphasized the strengthened alliance with Playtech as pivotal for enhancing customer acquisition and elevating the online gaming experience.
- The capital will also facilitate NorthStar’s market expansion endeavors within Ontario and potentially, across the broader Canadian region.
Playtech’s Ongoing Support for NorthStar
Playtech has been a consistent pillar of support for NorthStar, an Ontario-based betting platform. This collaboration, initiated in December 2021, was enhanced by Playtech’s substantial financial commitment well before the joint marketing venture formed in the previous year.
Key Highlights:
- Investment: A significant $12.25 million was directed into NorthStar via a convertible debenture. This was later transformed into equity, coinciding with NorthStar’s acquisition of Baden Resources Inc. in March 2023.
- Ownership Stakes: Playtech, as a result of the investment, now owns approximately 16% of NorthStar’s common shares (Potential: >20% with warrants).
- Board Membership: Signifying the strategic nature of the support, Playtech’s financial strategist, Chris McGinnis, has taken a seat on NorthStar’s board.
Additionally, Playtech demonstrated its commitment by renewing the software and services agreement with NorthStar, ensuring an extended partnership lasting another decade. This extended agreement confirms Playtech’s role not just as an investor but as a long-term strategic partner in NorthStar’s continuous growth in the competitive landscape of online gaming and sports betting.