In a call with analysts and investors Chairman and CEO of NorthStar Gaming Michael Moskowitz shared insights into the company’s operations and outlook for 2024. The company operates the NorthStarBets brand in Ontario, where it holds a license from the Alcohol and Gaming Commission of Ontario (AGCO).
Moskowitz introduced the brand, saying that, “the market is huge. Ontario, the largest province, was regulated in April 2022. We launched in Ontario in May 2022 and launched our brand in November to the rest of Canada.”
“Our product is built in partnership with the best of gaming and tech providers in the industry. It really gives us a unique business proposition and has fundamentally changed the way we deliver content,” he added.
A key partnership Moskowitz mentioned was with UK-based, prominent software provider Playtech.
“One of those investment partners is Playtech. They were with us early on, and they’ve invested heavily in our business, love what we’re doing, and love the growth and expansion we’ve seen in the Canadian market.”
Moskowitz provided insights into the company’s operational strategy.
“What you will see is very attractive payback rates for acquired players. This is part and parcel of the unique differentiation of our product.”
He further elaborated on the size of the Canadian market, highlighting its $8.5 billion worth and the dominance of iGaming over sports betting.
“[Our tech stack] is really the baseline of our product. Playtech is the meta-services and iGaming platform,” adding that the NorthStar product also integrates content into platforms from Kambi, a major player in sports betting. “We’ve integrated all the best games into our product, from IGT, Microgaming, and SGI, to provide a greater experience,” he explained.
He also underscored the importance of fraud protection and payment safety systems in their NorthStarBets mobile and desktop application.
Moskowitz noted the company’s strategic differentiation, emphasizing their focus on local markets and customized content.
“In terms of differentiation, there are two points to consider. One is our unique insights, which provide a customized content creation engine that feeds through our product’s journey. It’s focused on local markets and is 100% Canadian.”
He was realistic about market expectations, acknowledging the dominance of large multinational competitors and citing their market share of around 80%, but also expressing confidence in NorthStar Gaming’s potential to capture a significant portion of the remainder of the market.
“We are also extremely realistic about our market expectations…We expect to be a disproportionate percentage of the 20% of the market.”
Moskowitz confirmed that the company was looking at providing its own branded table games, saying, “We are now testing our branded table, and the initial response has been very promising. If that continues, we’ll continue to invest in branded tables.”
Finally, the CEO highlighted the success seen in player engagement and turnover due to their sports insights
“We are seeing higher average deposits and higher casino turnover, and GGR attributed to content from players who utilize our insights content.”