The Ontario Securities Commission (OSC) has issued a cease trade order against NorthStar Gaming Holdings Inc., halting the trading of its securities in Canada. This action follows the company's failure to file its audited annual financial statements for 2025, along with the necessary management discussion and analysis and executive certifications.
This order impacts NorthStar's securities, including those traded on the TSX Venture Exchange, where the company has been listed since 2023. However, it does not affect the operations of NorthStar Bets, the company's online casino and sports betting platform, which continues to accept bets.
NorthStar Bets was launched in May 2022, shortly after the company obtained its iGaming license in Ontario. The current regulatory halt is related not to its betting activities but to unresolved issues regarding audits and filings.
The delay stemmed from the company's independent auditor withdrawing its audit report. On May 6, 2026, the auditor retracted its report dated May 14, 2025, which covered the 2024 financial period, citing concerns over the reliability of controls associated with a key vendor's player account management software. This withdrawal has raised doubts about the accuracy of the company's 2025 financial figures.
NorthStar has contested the auditor's claims, asserting that the previous systems report from the vendor was dependable and demonstrated that proper processes and controls were in place to ensure data integrity. The auditor has requested a new systems report, which has contributed to the delays in filing.
Prior to the cease trade order, NorthStar sought a management cease trade order, which would have limited trading only by management. However, the OSC denied this request, expressing concerns that the company would not be able to complete the necessary filings within two months.
The cease trade order prohibits the trading of NorthStar securities across Canada, with some exceptions for individuals not classified as insiders or control persons who wish to sell their securities through regulated foreign markets. This order will remain until the required filings are completed.
If NorthStar manages to file the necessary documents within 90 days of the cease trade order, it can apply to the OSC to revoke the order. The company has not provided a specific timeline for when it will complete these filings but has promised to keep the market informed.
Additionally, the company’s annual meeting, originally set for May 25, 2026, has been postponed. This cease trade order follows a period of leadership changes at NorthStar, including the resignation of CEO Michael Moskowitz in December after four years in the role. Corey Goodman has been appointed as the Interim CEO, while Barry Shafran, the chair of the audit committee, also stepped down during this transition.
In March, NorthStar outlined its strategic priorities, focusing on disciplined execution, capital allocation, and enhancing profitability. The company aims to improve advertising effectiveness through a more return-driven approach and enhance the player experience to boost customer retention.
“We are committed to taking careful, strategic steps to position the company for profitability. The anticipated annual savings in general and administrative expenses reflect measures that have largely been put into action,” stated Goodman.
“Building on these reductions, management is actively pursuing additional efficiency initiatives across services, marketing expenditures, and cost of goods sold, which are expected to significantly improve the company's EBITDA profile,” the statement concluded.
NorthStar is also making targeted investments in product development to enhance customer retention and stabilize revenue streams.