Mr. Michael Moskowitz reports

NORTHSTAR GAMING REPORTS TRIPLE-DIGIT GROWTH IN WAGERS AND REVENUE IN Q3 2023

Northstar Gaming Holdings Inc. has released its financial results for the three- and nine-month periods ended Sept. 30, 2023. All dollar figures are quoted in Canadian dollars.

"We delivered another quarter of strong growth in Q3, more than doubling last year's results across key measures including wagers and revenue," said Michael Moskowitz, chair and chief executive officer of Northstar. "In a seasonally slow quarter, we continued to expand our customer base through our premium, differentiated product offering, while at the same time demonstrating our ability to effectively manage costs."

Financial highlights for the third quarter ended Sept. 30, 2023:

• Total wagers on the Northstar Bets website were $138-million in Q3 2023, an increase of 140 per cent compared with $57.6-million in Q3 2022.
• Revenue, net of bonuses, promotional costs and free bets, was $4.7-million in Q3 2023, including $200,000 of services revenue contributed by Spreads, compared with $2-million in Q3 2022, an increase of 131 per cent over the same quarter in the previous year.
• Gross gaming revenue on the Northstar Bets website was $5.5-million in Q3 2023, an increase of 120 per cent over $2.5-million in Q3 2022.
• Gross margin was $1.6-million in Q3 2023, an increase of 527 per cent over $300,000 in Q3 2022, and represented 35 per cent of revenue compared with 13 per cent of revenue in Q3 2022.
• On Oct. 31, 2023, the company announced the completion of a private placement financing of approximately $10.3-million consisting of common shares, warrants and convertible debentures.

Recent operating highlights:

• The company's Insights content -- proprietary editorial features offered seamlessly to customers within the Northstar Bets website and app -- continues to be a strong differentiator and driver of value. In Q3, players who read Insights content have 40-per-cent-higher deposits on average than other players.
• The company underscored its commitment to innovation with the announcement that it was first to market with an artificial intelligence feature that offers customers personalized sports bets based on their unique preferences.
• In early November, 2023, Spreads, an i-gaming site owned and operated by the Abenaki Council of Wolinak, was rebranded to Northstar Bets. The rebranding is expected to lead to continued development of the Northstar Bets brand outside of Ontario.

"As we enter the busiest time of the year with most of the major North American sports leagues now under way, we are very well positioned to drive further improvements in our results," added Mr. Moskowitz. "Our strengthened balance sheet, strategic partnerships, ongoing innovation in our product offering and development of our brand across Canada all point towards solid growth for the rest of 2023 and into next year."

Additional information

For additional information, please refer to company's condensed consolidated interim financial statements for the three- and nine-month periods ended Sept. 30, 2023, and the corresponding interim management's discussion and analysis (MD&A). These documents are available on SEDAR+, and on the company's corporate website.

About Northstar Gaming Holdings Inc.

Northstar proudly owns and operates Northstar Bets, a made-in-Ontario casino and sportsbook gaming platform that provides players with a uniquely local, premier user experience. The Northstar Bets sportsbook provides real-time news, stats, analysis and scores directly in the betting environment along with the most popular on-line casino games. Northstar also provides managed services to Spreads, an i-gaming site owned and operated by the Abenaki Council of Wolinak.

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