NorthStar Gaming Inc. today revealed its financial results for Q1 2025, covering the three months that ended on March 31, 2025, showing a 32% increase in revenue year-over-year, with a gross margin rise of 58% compared to Q1 2024. 

32% Growth in Revenue 

NorthStar manages and runs NorthStar Bets, a casino and sportsbook platform located in Toronto. NorthStar refreshed its Internet Gaming Operator license from the Alcohol and Gaming Commission of Ontario in February, set to expire next April. 

“We are pleased to begin 2025 with another quarter of strong year-over-year growth, with revenue increasing by 32% and gross margin up 58% over Q1 2024,” said Michael Moskowitz, Chair and CEO of NorthStar. 

Canadian gaming: Alberta Expansion

"At the same time, we continue to effectively manage our major operating expense items which are decreasing as a percentage of revenue. Our results are being driven in part by ongoing product and promotional innovations that reinforce our premium positioning.”

The organization announced a revenue of CAD $7.8 million for Q1 2025, along with a gross margin of CAD $3.0 million. 

Marketing expenses amounted to CAD $4.1 million, representing an 11% increase compared to the previous year, and accounted for 52% of revenue. 

Earnings at $7.8 Million 

The firm was established as an online gaming operator in Ontario on April 14, 2022, just 10 days following the market's launch. Ontario currently has 49 licensed operators and 83 gaming websites. 

Last month, iGaming Ontario announced gross gaming revenue of CAD $3.2 billion for the fiscal year 2024-25 (April 1, 2024, to March 31, 2025), marking the market's third year. Casino gaming revenue reached $2.4 billion, marking a 36% rise compared to 2023-24. 

Operator highlights for Q1 involved a rise in the variety of games available on its casino platform – up by 15%, exceeding 1,800 games. The firm launched the new Spring Tournament Series, featuring online competitions in live blackjack, slots, and sports wagering. 

Additional Casino Games 

NorthStar Bets Blackjack VZN debuted in March, a multiplayer blackjack game that captures the essence of live blackjack. 

The business announced the record customer retention rate in its history during Q1 2025.

"We anticipate another year of solid top line growth and margin expansion in 2025, supported by our recently strengthened balance sheet. Major expense items should continue to decline as a percentage of revenue as we realize further operating leverage through the scaling of the business,” said Moskowitz.

“We expect the managed services business to help drive revenue growth this year. Looking ahead, the Alberta government recently took another step forward in establishing a regulatory regime to become the second Canadian province to license online gaming as early as the end of this year, and we eagerly await further details.”