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NorthStar Gaming reported higher revenue and margin in Q3 2025 as the company strengthened its VIP strategy, expanded content, and tightened marketing spend.
NorthStar Gaming recorded $6.9 million in revenue for the quarter ending 30 September 2025, up 4% year on year. Gross margin reached $2.4 million, an increase of 14%, lifting margin percentage to 34.7%, compared with 31.7% in Q3 2024. Profit before marketing and other expenses came in at $0.2 million, reversing a $0.5 million loss in the prior-year quarter.
Marketing cuts and VIP focus reshape cost structure
Reduced spending and targeted acquisition helped shift performance.
General and administrative costs exceeded $2 million, but declined 16% year on year. Marketing spend also remained above $2 million, though NorthStar reduced its outlay by 21% as part of a strategy to prioritise higher-value players. The company said these adjustments improved efficiency and supported a stronger mix of revenue from users with long-term value projections.
CEO and Chair Michael Moskowitz said year-over-year growth in both revenue and gross margin reflected ongoing operational improvements aimed at enhancing customer experience while moderating expenses. He added that the company continues to innovate across its platform as the Ontario iGaming market evolves.
Content expansion and platform upgrades support acquisition
NorthStar introduced new features to strengthen its casino and sportsbook offering.
During the quarter, NorthStar launched The Boost, a standalone content site featuring sports and casino insights, scores and company commentary. The site is designed to reach a broader audience, support acquisition in Ontario and build brand presence in Alberta, where the government is preparing to introduce iGaming.
NorthStar also refreshed its casino lobby to highlight top-performing titles and deepen personalisation for users. Seasonal events such as the Grand Slots Showdown, the NorthStar Blackjack Championship, and NFL-themed free-to-play competitions added activity-driven engagement during the quarter.
The company operates NorthStar Bets in Ontario and provides managed services to NorthStarBets.com, licensed by the Kahnawake Gaming Commission and owned by the Conseil des Abénakis de Wôlinak.
Stronger nine-month performance but liquidity risk emerges
Revenue and margin improved sharply year to date, though debt concerns remain.
For the first nine months of 2025, revenue reached $23.3 million, up 17% year over year. Managed services revenue contributed $1.9 million, increasing 138%. Gross margin rose to $8.9 million, up 32%, and represented 38.2% of revenue. Profit before marketing and other expenses totalled $1.5 million, compared with a $0.6 million loss in the same period of 2024.
Despite these gains, NorthStar warned that its liquidity position may not be sufficient to cover operating and marketing expenses while meeting all debt obligations. The company said it may breach certain debt-related covenants, and has begun discussions with its lender.
A breach could require operational adjustments and, if needed, additional debt or equity financing to support the business through the next stages of its growth.
Source: Canadian Gaming Business
