Northstar Gaming Holdings Inc · TSXV:BET
Northstar Gaming — Q3 2023 Earnings Presentation
18 slides from Northstar Gaming's earnings presentation, Nov 14, 2023
Slide 1: Investor Presentation
TSXV: BET Investor Presentation November 2023
Slide 2: Disclaimer
DISCLAIMER Cautionary Statement The information contained in this presentation has been prepared by NorthStar Gaming Inc. (the “Company”) and contains confidential information pertaining to the business and operations of the Company. The information contained in this presentation: (a) is provided as
Slide 3: Spearheading the Intersection of iGaming and Media
SPEARHEADING THE INTERSECTION OF iGAMING AND MEDIA TSXV: BET 3
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS ~C$8.5B Canadian TAM, with Ontario’s regulated market launched in 01 April 2022 and Market Expansion to Rest of Canada November 2023* 02 Industry leading 3rd party gaming content 03 Cornerstone investment by Playtech PLC 04 Experienced management team with local knowledge and i
Slide 5: Canada Is a Potential C$8.5B Market
CANADA IS A POTENTIAL C$8.5B MARKET Regulated Ontario Market ~C$540M Q223, On Track to Reach C$2.6B for CY24 Projected Canada and Ontario Online Sports Betting and iGaming* Market Size (2026E)** (C$ billions) C$8.5B C$3.3B Total Market Total Market 5.7 2.2 2.8 1.1 Online Sports Betting iGaming Onlin
Slide 6: NorthStar Gaming Management Team
NORTHSTAR GAMING MANAGEMENT TEAM Michael Moskowitz Chin Dhushenthen Corey Goodman CEO & Chairman Interim CFO CDO and General Counsel • Brings 25+ years in the electronics industry • Chin has held numerous executive • Corey has held a variety of senior and was previously the Chairman and positions ac
Slide 7: Board of Directors
BOARD OF DIRECTORS Barry Shafran, CPA Brian Cooper Chris McGinnis, CPA, CFA Sylvia Prentice Lead Director, Audit Chair Director Director Director • Barry was the founder and CEO of • Brian founded S&E Sponsorship group, • Chris is currently the CFO of Playtech PLC • Sylvia is currently the President
Slide 8: NorthStar Gaming Engine
NORTHSTAR GAMING ENGINE Proprietary Technology Stack, Combines Joint Ventures With Leading Global Players In Playtech And Kambi The NorthStar MOBILE DESKTOP you see iGAMING & MANAGED SERVICE PLATFORM SPORTSBETTING PLATFORM The BETTING LINES / GAMING CONTENT NorthStar you don’t see DIGITAL MARKETING
Slide 9: Differentiated Product and Business Model
DIFFERENTIATED PRODUCT AND BUSINESS MODEL By 2024 the Canadian market is estimated to reach C$6.7B in GGR1 FY24E Market Share NorthStar is Well Positioned to Compete in Ontario and Beyond NorthStar Competitive Advantage: 20% ▪ Premium features such as Sports Insights provides unique point of differe
Slide 10: Competitive Payback Ratio
COMPETITIVE PAYBACK RATIO Attractive payback ratio on 190% lower 340% lower acquired players 10.6 Months 7.0 Months 2.4 Months 1 2 2 Competitor #1 Competitor #2 1. NSG Since Inception CAC per player/ monthly average GGR/player 2. Competitors both publicly listed companies with a market cap >C$$250 m
Slide 11: NorthStar Sports Insights
NORTHSTAR SPORTS INSIGHTS Why Content? Consumers of NorthStar’s in-house sports content translate to higher player values when compared to Mike Cormack Chris Toman Staff Writers: NorthStar average Head of Content Managing Editor Jordan Horrobin customer: • Mike has two decades of • Chris has a wealt
Slide 12: NorthStar Customer Journey
NORTHSTAR CUSTOMER JOURNEY Search Optimized Content appearing in Torstar Properties Curated by NorthStar Bets to Drive Traffic to NorthStar MASS/ SOCIAL MEDIA SEO/PPC TORSTAR CUSTOMER CONTENT CONTAINER TSXV: BET 12
Slide 13: NorthStar's Key Performance Indicators
NORTHSTAR’S KEY PERFORMANCE INDICATORS* Q3 Continued NorthStar’s Strong Growth Total Wagers C$ Millions Total Deposits C$ Millions $160.1 $17.6 $18.3 $16.7 $139.5 $138.0 $57.6 $6.5 $14.8 $1.8 0 0 Q1 Q2 Q3 Q1 Q2 Q3 2022 2023 2022 2023 Total Gross Gaming Revenue C$ Millions $5.5 $5.5 $4.4 $2.5 $0.7 0
Slide 14: Rest of Canada Expansion ("RoC")
Rest of Canada Expansion (“RoC”) Provides a Clear Catalyst for Growth • Total addressable Canadian market, excluding Ontario estimated at ~ C$5.2B1 at maturity ROC 13% • Head start on future provincial regulation. Build database and brand in advance of regulation • Operational benefits of expansion:
Slide 15: NorthStar Licensing
NORTHSTAR LICENSING ENTITY LICENSED BY AVAILABILITY Canadian entity with a Canadian Customers located in Ontario physical presence .CA The Alcohol and Gaming Commission of Ontario ENTITY LICENSED BY AVAILABILITY Managed services provider to Customers located in Canada northstarbets.com*, iGaming sit
Slide 16: Key Milestones
KEY MILESTONES COMPLETE COMPLETE COMPLETE COMPLETE Q2/Q3 2022 December 2022 May 2023 November 2023* Brand Building Final Phase Strategic Slapshot Media Acquisition Launch “.com” in Rest Of Canada Investment NorthStar launched its’ betting hub NorthStar acquired Slapshot Media Inc., a NorthStar in pa
Slide 17: Playtech's 2nd Strategic Investment
PLAYTECH’S 2nd STRATEGIC INVESTMENT Strategic Partnership Investment Details ⚫ In October 2023, Playtech completed a second strategic Investment ⚫ C$10.0 million by way of a convertible debenture and unit, investment in NorthStar pursuant to which Playtech to invest Size divided equally C$10.0 milli
Slide 18: Capitalization
CAPI TALI Z ATI O N ($ millions, except per share amounts) C$ Rivett & Related Other Entities Shareholders 18.6% Spot Share Price $0.09 28.4% Basic Shares Outstanding 193.3 Dilutive Securities1 12.1 193.3 million Bitove & Torstar shares outstanding Total Shares Outstanding 205.4 18.6% Entities.2 Dir
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