Leading content provider Playtech has made a sizeable investment in NorthStar Gaming in the burgeoning Ontario market.
The total strategic investment of CA$12.25m (£7.7m/€8.7m/US$9.3m) of Playtech goes to Ontario-based online casino and sportsbook NorthStar Gaming.
Solidifying Service Deal
The new investment agreement follows the extension of an existing Playtech-NorthStar software and services deal for an additional ten years, originally inked in December 2021.
Delivered as a convertible debenture, the investment is set to convert into equity and warrants secured by NorthStar’s proposed reverse takeover of Baden Resources Inc, agreed to in June 2022.
The proposed reverse takeover will net Playtech an estimated 16% of Northstar’s issued and outstanding common shares, as well as ownership of warrants worth as much as 20% more in stake boosts.
Shakeup at the Top
The investment will also bring Playtech’s chief financial officer Chris McGinnis aboard the board of directors of the newly listed entity. McGinnis will serve as the Playtech representative in the role of non-executive director.
Playtech Head Speaks
Playtech CEO Mor Weizer expressed his organisation’s excitement with the new venture:
We are excited to expand our partnership with NorthStar and build on the early success of our existing software and services agreement.
Built to Last
Weizer expressed further confidence in his company’s “extensive experience of what it takes to succeed in newly regulated markets,” as previously indicated by Playtech’s similar strategic agreements in other North American markets.
Weizer also lauded Northstar’s organisational model:
We’ve been impressed by NorthStar’s unique business model and product offering, and look forward to supporting them in their mission to become the market-leading online gaming platform in Canada.
NorthStar Leader Speaks
Northstar CEO Michael Moskowitz looked forward to the investment helping the operator to expand its reach.
Playtech’s unparalleled expertise in the gaming industry will help NorthStar accelerate our growth and rapidly expand our user base.
Moskowitz looked forward to leveraging the incoming funds to support the expansion of Northstar’s already strong market share across Ontario, as well as “enhancing our premium, content-driven experience for consumers.”
This is a key step forward for NorthStar Gaming, a company committed on its website to providing a “unique and responsible gaming brand that creates new jobs, brings growth to the Canadian economy, and generates new tax revenue to help Canadian communities.”
NorthStar has forged its reputation through strategic alliances and a focus on deep local roots to solidify its position.
The new investment from Playtech ensures that NorthStar will continue to build its dynamic brand for many years to come.