NorthStar Gaming enjoyed record results in Q2 2024 as it continues to grow at a faster pace than the Canadian market.

The Toronto-based operator reported that net revenue soared 61% year over year last quarter to reach $7.5 million. Total wagers on its Northstar Bets platform rose 41% to an all-time high of $225.5 million, generating gross gaming revenue of $8.7 million, up 58% from a year ago. Active players grew 48% while cost per acquisition declined 12%.

NorthStar outpacing Canadian competitors, per CEO

CEO and Chair Michael Moskowitz told investors on an earnings call on Wednesday that the company’s growth continues to outpace the Canadian market as a whole. iGaming Ontario reported Q2 2024 market growth of 32% and 34%, respectively, in handle and GGR; NorthStar was at 41% and 58%, respectively.

The record Q2 exceeded the previous record set in Q1 of this year, when NorthStar Bets took $218 million in handle, a GGR of $7 million and net revenue of $5.9 million.

“We are building on our momentum with another record quarter highlighted by growth in excess of 60% for both revenue and gross margin,” said Moskowitz. “Top-line growth continues to outpace expenses as we leverage our existing resources to scale the business efficiently, demonstrating the considerable upside in our business model.”

The company also shed light on its H1 2024 results, which posted GGR growth of 65% year-over-year to reach $16.3 million. Year-to-date, NorthStar Bets has taken $443.5 million in wagers, nearly double the sum it collected in the first half of last year. Gross margin during 2024’s first six months grew by 77%.

Since its debut in May 2022, NorthStar Bets has now taken more than $1 billion in wagers.

“Just over two years since the launch of NorthStar Bets, our online betting platform stands strong against major international competitors,” added Moskowitz. “Our premium offering has enabled us to outperform the Ontario market on key metrics like total wagers and gross gaming revenue. As we continue to innovate and provide unique content and outstanding customer service, we are enthusiastic about our prospects for continued growth.”

Western Canada, not just Alberta, in the crosshairs

On the earnings call, Moskowitz explained that the company is poised for further growth in the remainder of 2024 and beyond through its betting platform, as well as its sports insights content offerings and the managed services it provides to northstarbets.com in the rest of Canada. That platform is managed by subsidiary Slapshot Media Inc. and owned and operated by the Abenaki Council of Wolinak.

Moskowitz told investors that one of NorthStar’s major priorities moving forward is to explore how best to monetize the remainder of the Canadian market outside the regulated commercial gaming market of Ontario. NorthStar executives asserted that the potential size of the non-Ontario Canadian market is more than $5 billion.

In particular, said, Moskowitz, the company wants to increase its operational footprint in Western Canada.

“We will continue to build our brand outside of Ontario, as well as our database of customers,” the CEO said.

“It’s step-by-step for us… We have learned a tremendous amount [from Ontario] and we will look to drive player values that we’re seeing in Ontario combined with what we see as a lower acquisition cost. We’re targeting primarily Western Canada but, more importantly, we’re taking the best practices from Ontario.”

Moskowitz noted that this approach should give NorthStar Gaming “a headstart” if other provinces open.

Certainly, paying close attention to how Alberta moves forward is high on the company’s agenda. The CEO suggested Alberta is likely to take “a similar approach as Ontario” in terms of offering both online gaming and online sports betting. He called the province a smaller but “very attractive market,” noting it has the youngest average adult age and the highest per-capita GDP of any province.

“Alberta is going to give us a tremendous opportunity to replicate all our great work,” he added. “It will be almost a replication of Ontario, so that will give us a lift.”