NorthStar Gaming CEO Michael Moskowitz told investors this week that the company sees a great deal of profitability in its position as a smaller, niche operator in Canada.

NorthStar operates out of Toronto and runs separate websites, one inside Ontario to serve the regulated market with casino and sports betting offerings, and one elsewhere in Canada that is owned and operated by the Conseil des Abénakis de Wôlinak and licensed by the Kahnawake Gaming Commission.

Moskowitz told investors on the company’s earnings call this week that NorthStar is very well-positioned as a pan-Canada brand. He noted that while around 80% of the nationwide online gaming market is held down by major international brands, the 20% slice that remains is made up of a variety of more niche and local brands.

“This is still a very significant slice of the overall pie,” Moskowitz said. “It equates to approximately $1.3 billion overall. Just for perspective, if you are 3% of the overall market in Canada when it matures, that would be more than $200 million in terms of business, which is a significant increase on where we are today.”

Moskowitz has already confirmed the company intends to expand into Alberta once that market opens, which he said on the company’s earnings call this week he believes is likely to be late in 2025. NorthStar is expecting Alberta’s market value to be $1 billion, which would be the eighth-largest in North America.

He divulged that the company is seeking additional financing to fuel its planned growth in 2025, which Moskowitz hopes to detail publicly “very shortly.”

NorthStar keeps up record pace with YOY surge

Moskowitz was speaking after NorthStar Gaming reported double-digit year-over-year increases in wagers and revenue in its latest quarterly earnings release.

Wagers on the Ontario-facing Northstarbets.ca site last quarter totaled $234 million, a 69% year-over-year increase. NorthStar’s total wagering has now hit a new record mark in each of the last four quarters. Year-to-date, handle is up 54%.

Revenue, which includes managed service fees and net gaming revenue after bonuses, promotional costs and free bets, was up 45% to $6.8 million, and is up 55% YTD. Gross margin climbed 63% year-over-year to $2.7 million for the quarter, and is up 72% YTD.

“Our consistent revenue growth and improved economies of scale have enabled gross margin to fully cover overhead costs, a significant milestone in our journey toward profitability,” added Moskowitz in the release. However, the company remains at a net loss, although it has cut that down from $4.2 million this time last year to $3.1 million.

The handle, revenue and margin gains have been spurred on by several recent developments, including further funding from technology partner Playtech earlier this year and the launch of Sports Insights 2.0 last quarter. That upgraded sports content vertical complements its betting offering with comprehensive statistics, news and analysis. Moskowitz told investors it is already reaping rewards such as higher average deposits and turnover. It also provides improved casino content. NorthStar has also doubled its casino game selection since the start of 2024.