Canadian gaming operator NorthStar Gaming’s revenue and gross margin ticked up in the third quarter of 2025, as it continues to build out its content vertical and focuses on catering to higher-value players.
For the three-month period ended Sept. 30, 2025, revenue was 4% higher than last year at $6.9 million. Gross margin was $2.4 million, up 14% year over year, and gross margin percentage increased to 34.7% of revenue, up from 31.7% in Q3 2024.
Profit before marketing and other expenses was $0.2 million, compared to a loss of $0.5 million in Q3 2024. Both general and administrative (G&A) and marketing expenses were more than $2 million, although those numbers fell 16% and 21% year over year, respectively.
NorthStar Gaming said it has optimized its marketing investments to reduce costs and attract high-value players, and it continues to enhance its VIP infrastructure through events and incentives aimed at delivering a premium experience to players who contribute to a disproportionate amount of its revenue.
“We maintained our track record of year-over-year growth in both revenue and gross margin in the third quarter,” said CEO and Chair Michael Moskowitz. “We continue to strengthen the fundamentals of the business with KPIs remaining solid and ongoing innovation helping to attract and retain customers. Our team has been implementing operational improvements that are improving the player experience while at the same time reducing operating expenses.
“The third quarter of 2025 represented overall growth in NorthStar’s revenue at a time when the company’s business is maturing and the Ontario iGaming market continues to evolve.”
NorthStar bolsters betting and content platform
NorthStar owns and operates NorthStar Bets, an Ontario-facing online casino and sportsbook, and also provides managed services to the NorthStarBets.com iGaming site that is owned and operated by the Conseil des Abénakis de Wôlinak and licensed by the Kahnawake Gaming Commission.
The company’s growth in Q3 was aided by several upgrades in the quarter, including the launch of The Boost, a website dedicated to the company’s sports and casino content, including news, insights and scores. The website also targets a wider audience to help accelerate customer acquisition in Ontario, as well as to further build its brand awareness in Alberta as that province prepares to launch iGaming. NorthStar also continued its “Exceptionally Canadian” marketing campaign, including TV ads.
NorthStar users also now get a revamped casino lobby that prioritizes top-performing titles and provides a more personalized experience. The operator ran a slate of fall tournament events, including the Grand Slots Showdown and the NorthStar Blackjack Championship, along with the free-to-play NFL-themed Beat the Spread Challenge and other offerings.
Company may have to take on more debt
Year to date, for the nine months ended Sept. 30, revenue is 17% ahead of 2024 at $23.3 million, including $1.9 million of managed services revenue (up 138%). Gross margin of $8.9 million is 32% higher than January to September 2023, and gross margin percentage of 38.2% of revenue is more than four percentage points higher.
Profit before marketing and other expenses was $1.5 million YTD 2025, $2.2 million better than the loss of $0.6 million in YTD 2024.
Moskowitz said NorthStar has adjusted its strategy to focus on prudently spending to continue to optimize player acquisition and retention where those investments fit with the company’s finances and with market conditions.
However, a note in the company’s financial update acknowledged that its continued revenue growth is dependent on its ability to maintain adequate liquidity. Based on current forecasts, its cash flow and liquidity position may not be enough to fund its operating and marketing expenditures while also meeting all of its debt agreements.
“There is a risk that the company may breach certain debt-related covenants, and management has initiated discussions with the lender regarding these matters,” added the statement. “A breach could require the company to implement operational adjustments and, if necessary, seek additional debt or equity financing.”
