NorthStar Gaming Inc. today reported its financial results for Q1 2025, covering the three months that ended on March 31, 2025, showcasing a 32% increase in revenue compared to the previous year, and a gross margin rise of 58% compared to Q1 2024.
32% Growth in Revenue
NorthStar manages and runs NorthStar Bets, a casino and sportsbook platform located in Toronto. In February, NorthStar renewed its Internet Gaming Operator license with the Alcohol and Gaming Commission of Ontario, which will expire 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 organization announced revenues of CAD $7.8 million in Q1 2025, along with a gross margin of CAD $3.0 million.
Marketing costs reached CAD $4.1 million, reflecting an 11% rise compared to the previous year, constituting 52% of revenue.
Earnings at $7.8 Million
The firm was established as an online gaming operator in Ontario on April 14, 2022, ten days after the market opened. Ontario currently has 49 licensed operators and 83 gaming sites.
iGaming Ontario recently announced CAD $3.2 billion in total gaming revenue for the fiscal year 2024-25 (April 1, 2024, to March 31, 2025), marking the market's third year. Casino gaming revenue reached $2.4 billion, reflecting a 36% rise compared to 2023-24.
During Q1, the operator noted a 15% rise in the number of games available on its casino platform, bringing the total to over 1,800 games. The firm launched the new Spring Tournament Series, featuring online competitions that include live blackjack, slots, and sports wagering.
Additional Casino Games
NorthStar Bets Blackjack VZN launched in March, offering a multiplayer blackjack experience that mimics live blackjack.
The firm announced its greatest customer retention rate ever recorded 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.”