Toronto-based NorthStar Gaming (NSG) is gearing up for expansion across the Canadian marketplace following the completion of a $12.3m ‘strategic investment’ from Playtech.
The investment has been made by way of a debenture, which will convert into equity and warrants in connection with NorthStar’s previously announced takeover of Baden Resources.
The two parties have entered into a comprehensive amendment to their ‘Software and Services’ agreement that ‘significantly expands’ the partnership, including a 10-year extension, the right to expand the agreement across the entire Canadian marketplace, and changes to certain commercial terms.
Expansion is certainly the name of the game for NorthStar, which will use the capital raised from Playtech’s investment to support growth of its footprint across Ontario and future Canadian markets.
The capital will allow the online casino and sportsbook operator to invest in new technological innovations for the NorthStar Bets gaming platform while also reaching new audiences through marketing campaigns.
“Playtech’s unparalleled expertise in the gaming industry will help NorthStar accelerate our growth and rapidly expand our user base,” said Michael Moskowitz, Founding Partner and CEO of North Star Gaming.
“With the additional investment, we look forward to expanding our market share across Ontario and further enhancing our premium, content-driven experience for consumers.”
NorthStar Gaming further noted that it is currently in the process of completing its application to become publicly traded on the TSX Venture Exchange.
Meanwhile, Playtech has also agreed to act as a strategic investor and advisor to NSG over matters such as online operations, managed services and market expansion.
“We are excited to deepen our partnership with NorthStar and become the market-leading online gaming platform in Canada,” added Playtech CEO, Mor Weizer.
“As a key partner of NorthStar in their early stages, we understand and were impressed by NorthStar’s unique business model and product offering and are excited to further expand our partnership.”
As part of the agreement, Playtech CFO, Chris McGinnis, will join the Board of Directors at NorthStar as a Non-Executive Director, acting as Playtech’s representative.