NorthStar Gaming Reports Record Wagering and Gaming Revenue in Second Quarter of 2023

Toronto, Ontario--(Newsfile Corp. - August 24, 2023) - NorthStar Gaming Holdings Inc. (TSXV: BET) ("NorthStar" or the "Company") today released its financial results for the three- and six-month periods ended June 30, 2023. All dollar figures are quoted in Canadian dollars.

"Our second quarter growth was driven by increases in accounts and wagering activity as our differentiated, premium product continues to attract and engage customers," said Michael Moskowitz, Chair and CEO of NorthStar. "Our integrated editorial content is proving to be increasingly popular with customers looking for insights to improve their betting experience. As the business scales, we are delivering improved financial performance through operating leverage with revenue growth expected to continue to outpace expenses."

Financial highlights for the second quarter ended June 30, 2023: ⁽¹⁾

• Total wagers ⁽²⁾ were $160.1 million in Q2 2023, an increase of 15% compared to $139.5 million in Q1 2023.
• Gross gaming revenue ⁽³⁾ was $5.5 million in Q2 2023, an increase of 26% over $4.4 million in Q1 2023.
• Gaming revenue, which is net of bonuses, promotional costs and free bets, was $4.6 million in Q2 2023, an increase of 27% from $3.6 million Q1 2023.
• Gross margin was $1.9 million in Q2 2023 or 40% of Gaming revenue, an increase of 61% over Q1 2023, when gross margin represented 32% of Gaming revenue.
• Slapshot Media Inc. ("Slapshot") contributed $3.0 million of total wagers and $0.1 million of Gaming revenue in the second quarter following its acquisition by the Company on May 8, 2023.

Operating highlights:

• The Company acquired Slapshot Media Inc., a Canadian iGaming marketing and managed services company that specializes in providing managed services to Spreads.ca. The acquisition is expected to open up the Canadian market to the NorthStar brand beyond Ontario, materially expanding the Company's addressable market.
• Readership of the Company's Insights content - proprietary editorial features offered seamlessly to customers within the NorthStar Bets website and app - increased by 55% in the second quarter compared to Q1 2023. These figures do not include readership generated externally, such as original NorthStar Bets content placed at Torstar media properties.
• The NorthStar Bets virtual casino game portfolio recently surpassed 500 titles, an increase of more than 50% since the start of this year. The Company continues to source quality content from new gaming vendors, demonstrating its commitment to providing an immersive and entertaining experience.

"We expect the marketing and product initiatives we have underway to continue to drive growth throughout the remainder of this year and into 2024," added Mr. Moskowitz. "The Slapshot Media acquisition we completed in the second quarter was a very important milestone in our goal of expanding the NorthStar Bets brand outside of Ontario starting in the fall and further leveraging our existing infrastructure and content."

The Company wishes to announce that it has issued the following shares to Blue Sky Trading & Consulting Ltd. pursaunt to a shares for services arrangement: 141,026 common shares at a price of $0.39 per share and 163,690 common shares at a price of $0.34 per share. All shares issued pursaunt to this arrangement were legended and restricted from trading for a period of four (4) months and one (1) day from the date of issuance.

Additional Information

For additional information, please refer to Company's condensed consolidated interim financial statements for the three- and six-month periods ended June 30, 2023, and the corresponding interim management's discussion and analysis ("MD&A"). These documents are available on SEDAR at www.sedar.com, and on the Company's corporate website at www.northstargaming.ca.

About NorthStar

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 online casino games. NorthStar also provides managed services to Spreads.ca an iGaming site owned and operated by the Abenaki Council of Wolinak.

A Canadian company, NorthStar is uniquely positioned to become a convergence leader in the intersection of sports media and sports wagering thanks to its partnerships and agreements with leading media companies. NorthStar is committed to operating at the highest level of responsible gaming standards.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Non-IFRS Financial Measures

Statements in this news release make reference to "total wagers" and "gross gaming revenue", which are non-IFRS (as defined herein) measures that the Company believes are appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Company's past financial performance and prospects for the future. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation. Wagers is calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end. Gross gaming revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.

Cautionary Note Regarding Forward-Looking Information and Statements

This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: financial guidance for 2023, expected performance of the Company's business, expansion into new markets and future growth opportunities and expected benefits of transactions. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing readers to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; and the ability of the Company to implement its business strategies. NorthStar believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Information contained in forward-looking statements in this communication are provided as of the date hereof and NorthStar disclaims any obligation to update any forward-looking statements, whether as a result of new information or future events or results, except to the extent required by applicable securities laws.

For further information:
NorthStar Gaming
Ben Powell
VP Corporate Development
Investorrelations@northstargaming.ca

¹ Second quarter 2023 results are compared against first quarter 2023 results, as the Company's online casino and sportsbook was launched mid-way through the second quarter of 2022, making year-over-year comparisons less meaningful.
^{2 "}Total wagers" is a non-IFRS financial measure. For important information on the Company's non-IFRS measures, see "Non-IFRS Financial Measures".
^{3 "}Gross gaming revenue" is a non-IFRS financial measure. For important information on the Company's non-IFRS measures, see "Non-IFRS Financial Measures".

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