Playtech Bolsters NorthStar Gaming with Strategic Investment and Extended Partnership
Playtech has reaffirmed its commitment to NorthStar Gaming by extending its strategic partnership and providing additional financial support to boost NorthStar’s expansion in Ontario.
Playtech Software Limited and NorthStar Ontario, a subsidiary of NorthStar Gaming Holdings, have agreed to extend their existing marketing agreement through to October 31 of this year. This deal, initially signed in June last year, focuses on enhancing NorthStar’s player acquisition strategy in Ontario, leveraging Playtech’s advanced technology and substantial market presence.
Under the terms of the extended agreement, Playtech will provide marketing services valued at up to CA$4.0m (£1.8m/€2.1m/US$2.2m). In return, Playtech will receive a share of the revenue generated from the marketing efforts it supports. This model not only incentivizes performance but also aligns the interests of both parties toward mutual profitability and growth.
Financing boost for NorthStar
In addition to marketing support, Playtech has extended a CA$3.0m unsecured, interest-bearing promissory note to NorthStar. This financial injection, bearing an interest rate of 8.0% per annum, is designed to support NorthStar’s ongoing growth initiatives and general corporate needs.
Michael Moskowitz, chair and CEO of NorthStar, expressed his enthusiasm about the continued partnership: “We are very pleased to continue to strengthen our relationship with Playtech, one of the world’s leading gambling technology companies. Their ongoing support has been instrumental in helping us to acquire new customers, provide a premium online gaming experience, and fund the expansion of our brand in Ontario and across Canada.”
Deepening Financial Ties
The relationship between Playtech and NorthStar extends beyond simple partnership agreements. Prior to the marketing deal, Playtech made a strategic investment of $12.25m in NorthStar, further solidifying their alliance.
This investment was structured as a convertible debenture, later converted into equity, granting Playtech approximately 16% of the total issued and outstanding common shares of NorthStar, with additional warrants to increase this stake to over 20%.
