NorthStar Gaming’s revenue surged 32% year-over-year in the first quarter of 2025, the Toronto-based gaming and media operator reported this week.

Total revenue and reached $7.8 million for the three months ended March 31. Of that, $7.6 million was gross gaming revenue less bonuses and promotions such as free bets, while around $200,000 was revenue from managed services fees.

Revenue for the first quarter of 2024 was $5.9 million.

Gross margin grew even more strongly, up 58% to $3.0 million, while gross margin percentage increased to 38.5%, up from 31.5%.

The company posted profitability last quarter, with profit before marketing and other expenses at $0.6 million in Q1 2025 compared to a loss of $0.6 million in Q1 2024. General and admin expenses and marketing expenses each dropped year-over-year, both in terms of dollar value and percentage of revenue.

NorthStar Gaming Chair and CEO Michael Moskowitz put the strong growth down to, in part, ongoing product and promotional innovations.

The first-quarter results come two weeks after NorthStar reported 51% growth in NorthStar Bets wagering handle, 57% growth in total company revenue and 91% increase in gross margin in the full year of 2024.

NorthStar expands online casino offering, boasts record retention

NorthStar said in its Q1 2025 earnings release that it recorded the highest customer retention rate in its history in the quarter, something it said was driven by customer experience, innovative promotions and a focus on high-value players through the NorthStar Elite VIP program.

The operator also bolstered its online casino offering, increasing the number of games offered on its casino platform by 15% to more than 1,800 games during the first quarter.

That came in addition to the launch of the multiplayer NorthStar Bets Blackjack VZN in late March, as well as the new Spring Tournament Series with premium online tournaments in live blackjack, slots and sports betting.

Proud Canadianism sets NorthStar apart, says CEO

In Ontario, NorthStar is one of 50 online gaming operators competing for market share, customers and revenue in a highly saturated market.

As a smaller, niche brand, Moskowitz believes NorthStar’s fervent commitment to being an evidently Canadian brand is an advantage.

“The first threshold to acquire a new customer is to be one of the platforms they consider,” Moskowitz told investors on an earnings call in May. “For a smaller player like NorthStar, that means differentiating our offering.

“We’ve always made it clear that North Star is a Canadian brand that has even more relevance in the current political environment, where there is a strong Canadian sentiment. NorthStar is completely focused on the Canadian market. All of our content branding and promotions are designed with that specific audience in mind.”

Existing cross-country footprint may offer Alberta advantage

As well as its Ontario-facing sportsbook and online casino, NorthStar offers another website elsewhere in Canada. Via the latter, which is owned and operated by the Conseil des Abénakis de Wôlinak and licensed by the Kahnawake Gaming Commission, NorthStar Gaming offers managed services to Wôlinak.

On an earnings call in May, Moskowitz suggested that the presence and strength of its brand outside Ontario will give the operator a headstart in Alberta’s upcoming regulated market, as well as other provinces that may potentially regulate online sports betting and casino in the future.

“In Ontario, we’ve been growing faster than the overall market, meaning we are gaining share in the rest of Canada,” Moskowitz told investors. “We believe there’s additional upside in our managed services business, and we will be ready to apply for a license when other provinces open up to commercial operators.

“It is the pipeline for the future. As markets become regulated, the databases and the business we’re building in that jurisdiction will turn into regulated business in years to come. A good example is Alberta. Investing in that base business will pay dividends later.”