NorthStar Gets $3.5 Million in Financing from Playtech
NorthStar Gaming has secured $3.5 million in short-term financing from Playtech, marking the third collaborative transaction between the two companies.
Playtech has a long-standing relationship with NorthStar, dating back prior to this year's financial commitments.
LISTEN TO THIS ARTICLE:The new funding will be allocated towards NorthStar's ongoing growth initiatives and corporate operational needs.
The financing facility's repayment is scheduled for April 25, 2025, or upon completion of subsequent financing transactions exceeding $10 million. The loan carries an 8% annual interest rate, payable in arrears at maturity.
NorthStar's outstanding obligations to Playtech now total $9.5 million, following short-term financing transactions on April 25 and September 13, 2024.
This injection of capital will support our growth as we continue to deliver improved financial performance, evidenced most recently in our third quarter 2024 results.
Playtech and NorthStar’s Enduring Partnership
Playtech has a long-standing relationship with NorthStar, dating back prior to this year's financial commitments.
In December 2021, the two entities entered into an existing software and services deal.
In February 2023, they agreed to extend their existing software and services deal by 10 years. The deal extension also coincides with Playtech's CA$12.25 million (US$9.3 million) in the Ontario-based online casino and sportsbook.
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The deal saw Playtech own 16% of NorthStar's outstanding common shares, with warrants enabling future expansion.
Additionally, following the investment, Playtech's CFO, Chris McGinnis, joined NorthStar's Board of Directors.
NorthStar Fined $30,000
In October, NorthStar was in the news when it was fined $30,000 for regulatory breaches, including failing to restrict access to its site, NorthStarBets.ca, to Ontario residents.
According to the AGCO, gaming sites registered in the province can only offer games to players within Ontario unless another provincial government approves them. This mandates that online gaming operators geographically restrict their services to Ontario residents.
However, NorthStarBets.ca was allegedly unable to precisely detect the location of a device during testing.
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