Machibet777 CasinoNorthStar Gaming Secures Largest Financing in Company History

One of the best sportsbooks in Canada has made a huge splash.

NorthStar Gaming has to borrow CAD $43.3 million on a senior secured first-lien term loan. Pending final approval from the TSX Venture Exchange, this is the largest financing transaction in the company's history and a significant win for one of the top Ontario sports betting sites.

Beach Point Capital Management provided the funding, while Playtech and its subsidiaries provided additional credit support. The company has also partnered with NorthStar as a technology provider and strategic partner.

“This is a pivotal moment for NorthStar, marking the largest financing in our history. This Credit Facility strengthens our balance sheet and directly supports our ability to scale operations and drive the business towards profitability with a single-minded focus. We are grateful to Beach Point Capital Management for their trust in our strategy and vision. We are also thankful for Playtech’s steadfast partnership which was instrumental in securing this funding, reinforcing their value both strategically and as a technology provider,” said Michael Moskowitz, Chair and CEO of NorthStar.

Details

The credit facility has been provided on terms structured to achieve several NorthStar objectives. The new financing replaces, in part, a prior extended CAD $9.5-million loan extended to NorthStar Gaming by Playtech.

Another CAD $7 million will be used to provide an interest reserve account related to the credit facility. The remainder will be used for working capital, general corporate purposes, and the transaction costs of the financing.

“Beach Point has deep experience investing across the gaming sector and is excited to partner with NorthStar to support their strategic initiatives. The online gaming sector has been growing rapidly, and this investment reflects our confidence in the Company’s leadership, market potential, and ability to deliver long-term sustainable growth. Likewise, we value the partnership with Playtech, who are contributing their leading technology, global reach, and strategic vision towards NorthStar’s continued success,” Beach Point Capital Management Managing Director Gabriel Fineberg commented.

NorthStar gains ground

NorthStar Gaming operates the NorthStar Bets platform, which has handled more than $1 billion since its launch in Ontario in 2022. The platform offers online sports betting and online Canadian casino games in Ontario and other Canadian provinces. 

Playtech, a gambling technology and marketing solutions company, was key in securing the financing. NorthStar has stated that its longstanding partnership with Playtech has proven instrumental in advancing its operational goals.

NorthStar's announcement also positively impacted its market performance. Shares in NorthStar Gaming Holdings Inc. increased 9.09%, closing at CAD $0.06 per share on Monday.

Written By:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.