Q2 FY25 Quarterly Activities Report & Appendix 4C

Double-digit revenue growth and record gross margin underscore NorthStar's scalable growth model

NorthStar Gaming Holdings Inc. (TSXV: BET,OTC:NSBBF) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announced its financial results for the three- and six-month periods ended June 30, 2025. All dollar figures are quoted in Canadian dollars.

"Our team maintained our pattern of solid year-over-year growth, led by managed services revenue more than doubling over the second quarter of last year," said Michael Moskowitz, Chair and CEO of NorthStar. "Operating leverage driven by continued growth of the business has led to gross margin continuing to outpace revenue growth, with Q2 2025 gross margin percentage reaching an all-time high of 40.8%, advancing our path to profitability. Ongoing innovation and efficiency in our marketing program is enabling us to drive growth while at the same time reducing operating expenses as a percentage of revenue."

Financial Highlights for the Second Quarter Ended June 30, 2025 ("Q2 2025"):

• Revenue¹ was $8.5 million in Q2 2025, a 15% increase from $7.4 million in Q2 2024. Revenue in Q2 2025 includes $0.9 million of managed services revenue, an increase of 125% from $0.4 million in Q2 2024.
• Gross Margin was $3.5 million, a 25% increase from $2.8 million in Q2 2024, while the Gross Margin percentage increased to 40.8% of revenue, up from 37.6% in Q2 2024.
• Profit before marketing and other expenses² was $0.7 million in Q2 2025, an increase of 87% compared to $0.4 million in Q2 2024.
• General and administrative expense was $2.7 million in Q2 2025, an increase of 14% from $2.4 million in Q2 2024. The increase is primarily due to $0.3 million of one-time expenses incurred in Q2 2025 associated with the restatement of prior financial results and disclosure review. G&A expense excluding one-time expenses represented 28.4% of revenue compared to 32.3% a year earlier.
• Marketing expense was $3.1 million in Q2 2025, a decrease of 16% from $3.6 million in Q2 2024, and represented 35.8% of revenue compared to 48.8% in Q2 2024. The Company continues to realize efficiencies in its marketing program.

Financial Highlights for the Six-Month Period Ended June 30, 2025 ("YTD 2025"):

• Revenue¹ was $16.4 million in YTD 2025, a 23% increase from $13.4 million in YTD 2024. Revenue in YTD 2025 includes $1.1 million of managed services revenue, an increase of 120% from $0.5 million in YTD 2024.
• Gross Margin was $6.5 million, a 39% increase from $4.7 million in YTD 2024, while the Gross Margin percentage increased to 39.7% of revenue, up from 34.9% in YTD 2024.
• Profit before marketing and other expenses2 was $1.3 million in YTD 2025 compared to a loss of $(0.1) million in YTD 2024.
• General and administrative expense was $5.2 million in YTD 2025, an increase of 8% from $4.8 million in YTD 2024. The increase is primarily due to $0.3 million of one-time expenses incurred in Q2 2025 associated with the restatement of prior financial results and disclosure review. As a percentage of revenue, G&A excluding one-time expenses decreased to 29.7% in YTD 2025 compared to 35.9% a year earlier.
• Marketing expense of $7.2 million decreased 3% from $7.4 million in YTD 2024, and represented 43.7% of revenue compared to 55.1% in YTD 2024.

Recent Operating Highlights:

• Launched "Summer of Spoils" marketing campaign highlighted by "Exceptionally Canadian" branding targeted at strengthening brand loyalty and player engagement through the busy summer months and reinforcing NorthStar's Canadian roots.
• The Company sustained record-level customer retention, driven by repeat engagement from recent first-time depositors.
• Realized continued improvement in cost per acquisition of a customer ("CPA"), down 10% from Q2 2024 due to the increasing efficiency of marketing programs.
• Completed the Spring Tournament Series in April 2025, with both new and existing players showing higher-than-average engagement levels in subsequent months.
• Initiated a comprehensive upgrade of our Casino UI/UX to enhance speed, flexibility and overall customer experience.
• Established a new partnership with Snappy Inc. to deliver personalized, scalable gifting for our rapidly growing base of NorthStar ELITE members.
• Celebrated our third birthday by hosting exclusive in-person experiences for select NorthStar ELITE members.

Outlook

"We expect to continue to deliver solid year-over-year growth in the coming quarters, driven by steady improvement in our business fundamentals and KPIs," said Mr. Moskowitz. "We have continued with our focus on financial discipline and prudent cost management to maintain our progress towards profitability. As the Ontario market matures, we are excited by growth opportunities in other regions of Canada through our managed services business and the anticipated introduction of regulatory frameworks in provinces such as Alberta."

Q2 2025 Corporate Update Webinar

On August 14, 2025, Michael Moskowitz will present an in-depth Corporate Update, including a discussion of the Company's Q2 2025 Earnings, current operations and strategic priorities. All investors and other interested parties are invited to register for the webinar at the link below.

Date: Thursday, August 14, 2025
Time: 11:00 am EDT
Register: Webinar Registration

Management will be available to answer your questions following the presentation on the webinar platform. You may also submit your question(s) beforehand in the registration form linked above.

Stock Option Cancellations

The Company also announces that it and certain directors, officers and consultants of the Company have, effective today's date, mutually agreed to cancel stock options (the "Cancelled Options") exercisable to acquire an aggregate of 6,026,779 common shares of the Company. These Cancelled Options were granted on March 3, 2023, with an expiry date of March 3, 2028, and were each exercisable at a price of $0.50 per common share. No consideration was paid for the surrender of the Cancelled Options.

Restatement of Results

The comparative results for the three- and six-month periods ended June 30, 2024 have been restated in the Company's financial statements and the corresponding management's discussion & analysis ("Q2 2025 MD&A") to include additional merchant fees and player bonus expenses which were not captured in the previously published financial statements. Please see note 2 of the Company's condensed consolidated interim financial statements for the three- and six-month periods ended June 30, 2025 ("Q2 2025 Financial Statements").

Additional Information

For additional information, please refer to the Q2 2025 Financial Statements and the corresponding Q2 2025 MD&A. These documents are available on SEDAR+ at www.sedarplus.ca, and on the Company's corporate website at www.northstargaming.ca.

About NorthStar

NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets Casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.

As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. 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 ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Non-IFRS Financial Measures

Throughout this document, management uses certain non-IFRS financial measures and supplementary financial measures to evaluate the performance of the Company. The term "Profit/(Loss) before marketing and other expenses" is a non-IFRS financial measure. This measure is not a recognized measure under International Financial Reporting Standards ("IFRS") and does not have a standardized meaning prescribed by IFRS and is, therefore, not necessarily comparable to similar measures presented by other companies. Rather, this measure is provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective and to discuss NorthStar's financial outlook. Accordingly, this measure 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.

Operating Results

Marketing expenses are a key driver of the business but are completely discretionary. Management considers "Profit/(Loss) before marketing and other expenses" to be a good indication of the extent to which the business' Gross Margin is in excess of its overhead costs, and therefore offsetting some portion of marketing expenses, reflecting improving economies of scale.

(1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies.

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: expected performance of the Company's business, the Company's growth plans being fully funded, expansion into new markets and future growth opportunities, and expected benefits of transactions. The foregoing are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others 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. This forward-looking information is based on management's opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward- looking information. 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; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form, which is available under NorthStar's profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company's control.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar's expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.