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NorthStar Gaming Holdings has confirmed job cuts and a broad cost reduction programme as the Canadian operator moves to reach profitability on the NorthStar Bets platform following a leadership change late last year.
The company, listed on the TSX Venture Exchange under the symbol BET, announced the restructuring on February 23, targeting approximately C$3 million in annualized general and administrative savings. The measures include selective reductions in salaried personnel, termination or renegotiation of contracted services, and cuts to content production costs. The full financial impact is expected to phase in over the course of 2026, with the revised expense base fully reflected from 2027.
Personnel Reductions and Operational Cuts
The workforce reductions form one part of a wider efficiency drive. NorthStar said it is reducing reliance on external advertising agencies, rationalising agency fees, and recalibrating discretionary marketing spend. The company is also scaling back its Sports Insights content vertical and The Boost, two branded content products it had invested in to differentiate the NorthStar Bets platform.
Restructuring-related costs will be recognised in the current financial year under applicable international financial reporting standards. Management said transition-related cash outflows will continue during a wind-down period through 2026 as legacy arrangements are phased out.
“We are focused on taking deliberate, measured steps to position the Company for profitability,” said Corey Goodman, Interim Chief Executive Officer of NorthStar. “The expected annualized G&A savings reflect measures that have largely been implemented. Building on these reductions, management is actively deploying additional efficiency and operating leverage initiatives across services, marketing spend, and cost of goods sold that are expected to materially enhance the Company’s EBITDA profile.”
Lender Discussions and Liquidity Monitoring
NorthStar acknowledged active monitoring of liquidity and capital requirements as the restructuring progresses. The company said its cost reduction initiatives are expected to strengthen its covenant position with its senior lender, with constructive discussions ongoing. The company did not disclose the identity of its lender or the specific covenant thresholds in question.
The restructuring follows the departure of Michael Moskowitz, who stepped down as CEO and board chair in December 2025. Goodman, appointed on an interim basis, is overseeing the transition to a leaner operating model. The company said it remains committed to the NorthStar Bets platform as its core commercial focus, with continued investment in player experience and retention to stabilise revenue over time.
Ontario Market Context
NorthStar Bets operates primarily in Ontario, Canada’s regulated iGaming market, which reported C$4 billion in revenue in 2025, up 34% year-on-year. The Ontario market has attracted a growing number of licensed operators since its 2022 launch, intensifying competition for player acquisition and retention. Alberta is preparing to open its own regulated iGaming market in 2026, with registration for operators already open, though NorthStar has not announced plans to participate in that market.
For smaller operators on the TSXV, the path to profitability in Ontario has proven difficult against better-capitalised competitors. NorthStar reported 57% revenue growth in fiscal 2024 alongside a 91% increase in gross margin, but continued to run at a loss. The 2026 restructuring signals a strategic pivot from volume-driven growth toward a more disciplined cost structure, with management framing the EBITDA improvement as the primary near-term objective.
The company’s revised expense run rate, once fully reflected in 2027, will be the clearest indicator of whether the cuts are sufficient to move the business into sustainable profitability. Ontario’s iGaming market continues to grow, but that growth is being distributed across an expanding operator base, leaving less room for platforms that cannot demonstrate operational efficiency alongside product quality.
Source: NorthStar Gaming Holdings Inc.
