NorthStar Gaming Announces Job Cuts During Restructuring for 2026 Profitability

Key Points

• NorthStar Gaming initiated a restructuring plan featuring personnel reductions and tighter cost management.
• The company changed focus from rapid expansion to reaching sustainable profitability by 2026.
• NorthStar Bets stays the core product, with scheduled upgrades targeting better retention and performance.

NorthStar Gaming announced job cuts on starting a restructuring process targeting business reset and enhanced long-term performance. The company stated that its primary goal now focuses on reaching profitability in 2026, showing a definite move from its previous expansion-driven strategy. Management adopts a more controlled approach to stabilise operations and build stronger financial foundations through this change.

NorthStar Gaming presented a plan featuring stricter capital allocation, stronger cost controls, and a modified approach to measuring returns in a statement issued on 24 February. The company will reduce salaried employees and contracted services where efficiencies appear without damaging service levels as part of this plan. Future spending will receive increased examination, with capital going only where performance definitely justifies it, management also confirmed.

The company stated its main commercial emphasis stays on NorthStar Bets, its online sportsbook and casino platform, even with restructuring measures. Leadership intends to improve the current product through better design, service delivery, and domestic branding instead of creating new verticals. Usability and backend performance will receive attention in product upgrades, targeting longer player activity and improved retention over time.

Management Perspective on Sustainable Growth

Interim chief executive Corey Goodman stated success will not come from temporary acquisition increases. The company will track progress using consistent and lasting revenue growth, which management views as a better sign of long term stability, he clarified. The wider restructuring strategy gains support from this perspective and strengthens the shift toward sustainable performance.

NorthStar decreased overhead in general and administrative areas to match costs with updated priorities during the overhaul. These actions should produce approximately CA$3m in yearly savings, with most advantages appearing throughout 2026, the company anticipates. Marketing spend receives stricter control while executives cut optional advertising, renegotiate supplier agreements, and decrease dependence on outside agencies simultaneously.

Goodman called the restructuring calculated instead of sudden, observing that most administrative savings already exist. Additional efficiencies throughout services, promotions, and cost of goods sold ought to help EBITDA improvements, he continued. Management will maintain focused investment in product development where they think it can improve retention and lower revenue fluctuations, although cost discipline stays important.

Content Assessment and Financial Projections

The company reduces spending on Sports Insights content and The Boost platform during a wider examination of content production expenses. Workforce reductions, marketing modifications, and content changes should together improve operating performance as 2026 continues, NorthStar anticipates. Near-term transition-related cash outflows will persist, but a modified expense structure should appear completely from 2027. Restructuring charges will be recorded following relevant financial reporting standards.

Leadership transitions happened before the restructuring process. Michael Moskowitz left his positions as chief executive and board chair in December. Corey Goodman shifted from his former position to interim CEO, and Dean MacDonald took the chair role when the company began this transition period.