In the thriving Canadian province of Ontario, a significant move has bolstered the gaming landscape with Playtech Software extending its strategic marketing agreement with NorthStar Gaming. This extension is a clear testament to the ongoing success and commitment to accelerating player acquisition strategies that have already shown powerful growth drivers for NorthStar in the region during the year 2023.
Signed in June of the previous year, the initial marketing accord resulted in a total contribution of $4.0 million in services from Playtech, vital in propelling NorthStar’s growth across Ontario. With the successes of this partnership, the extended deal promises another tranche of marketing services to the value of up to $4.0 million, set to take the collaboration to new heights until the end of October 2023.
In a synergistic relationship, Playtech Software will be duly compensated with a revenue share model stemming from the generated income associated with the marketing ventures they are fuelling. This strategy aligns the business interests of both entities towards shared achievements within Ontario’s burgeoning market.
In a separate yet equally strategic financial move, NorthStar has embraced further support from Playtech in the form of a $3.0 million unsecured, interest-bearing promissory note. At an interest rate of 8.0% per annum payable upon maturity, these funds are earmarked to drive NorthStar’s ongoing growth tactics and support general corporate functions.
Michael Moskowitz, NorthStar’s chair and CEO, expressed a robust enthusiasm about reinforcing their relationship with Playtech—one of the globe’s gambling technology front-runners. He credited Playtech’s unwavering support as instrumental in attracting new customers, delivering a premium online gaming experience, and expanding their brand presence both in Ontario and across Canada.
The financial and technological partnership of Playtech and NorthStar dates beyond this latest marketing agreement, with roots stretching back to a $12.25 million strategic investment made by Playtech into the Ontario-based entity, preceding the initial marketing deal. Additionally, the software and services agreement existing between the two was lengthened by a decade, reinforcing a strategic partnership that began in December 2021.
This pivotal investment came in the form of a convertible debenture, later turned into equity and warrants in relation to NorthStar’s takeover of Baden Resources Inc., a transaction that reached culmination in March 2023. Playtech, through this conversion, now controls approximately 16% of NorthStar’s total common shares in issue, with warrants that allow it the potential to raise its stake to over 20%.
Moreover, on the heels of this investment, Playtech extended its influence through executive movement, as Playtech’s CFO Chris McGinnis joined the board of directors of the publicly listed NorthStar—streamlining governance and business strategies.
For NorthStar, this infusion of financial support and marketing prowess signifies a stepping-stone toward their envisioned domestic expansion. Playtech’s endorsement and commitment reflect a strategic bet on NorthStar’s growth and the broader Canadian market’s potential.
Ontario’s gaming sector continues to be a vibrant market for innovation and growth in the gaming industry, and the reinforced partnership between Playtech and NorthStar is set to create waves in the arena. Through a mutual dedication to technological excellence and market expansion, both parties are converging on a future that promises to redefine gaming experiences within Canada while also driving shareholder value and consumer satisfaction.
In conclusion, the extended partnership and additional financing secured with Playtech showcase NorthStar’s commitment and ongoing efforts to expand its footprint, leverage technology for enhanced player experiences, and achieve its broader strategic objectives within the vivid tapestry of Ontario’s gaming industry.
