Playtech invests CA$12.5m in NorthStar Gaming

Playtech has made a major strategic investment in NorthStar Gaming Inc, a Canadian iGaming company and operator. The sum total of the investment is set at CA$12.25m (US$9.40m) and was completed through Convertible Debenture, the companies said in a press release.

The funding will help NorthStar Gaming to complete its reverse takeover of Baden ResourcesInc. which will allow the company to then pursue a TSX Venture Exchange listing.

The investment has several important effects on the ongoing relationship between Playtech and NorthStar Gaming as well. The investment will also see Playtech’s CFO join the Board of Directors of NorthStar. Chris McGinnis will be a Non-Executive Director for his company and represent it within NorthStar Gaming.

NorthStar Gaming Founding Partner and Chief Executive Officer Michael Moskowitz has welcomed the opportunity to bring Playtech on board, hailing the company’s expertise as unparalleled. He added:

"With the additional investment, we look forward to expanding our market share across Ontario and further enhancing our premium, content-driven experience for consumers."

NorthStar Gaming will also leverage the capital raised from the investment to further support its growth in Canada and Ontario. The company will have the opportunity to drive innovation, unfold its product offering, and generally reach new audiences through marketing campaigns.

Notably, the investment has triggered changes to the Software and Services Agreement which will now expand the partnership between the two companies. This will include a ten-year extension to the agreement and a right to expand further across the Canadian marketplace, the companies detailed in the official release.

Playtech is similarly in a position to help strengthen NorthStar Gaming’s footprint in the Canadian market, specifically in the regulated and licensed Ontario online casino and sports betting ecosystems. Playtech Chief Executive Officer Mor Weizer welcomed the opportunity to thicken the ties between the companies, commenting that Playtech would seek to become the market-leading online gaming platform in the country.

Playtech is in a unique position to benefit as well, as it has been one of the early partners of NorthStar Gaming which has kept on growing over the past months. Weizer further hailed NorthStar Gaming’s unique business model and product offering.

Previously, NorthStar Gaming entered into an important partnership with the National Basketball Association through its NorthStar Bets, becoming an Authorized Gaming Operator for the association in Ontario.

Image credit: Playtech