PlayStar nets $15m private equity investment to help fund 2023 Pennsylvania launch
US-facing online operator PlayStar Gaming Group has secured $15m in equity funding from technology-focused investment firm Meyer Global Management.
PlayStar has executed a letter of intent with the investor, and will use the proceeds to support its launch in the state of Pennsylvania next year.
PlayStar Casino is currently live in New Jersey, where it aims to offer an online casino experience “with a heavy focus on personalisation and player engagement” by leveraging real-time data to create tailor-made player journeys.
In its five months of operating in the market since soft launching in August, PlayStar said it has “made a flying start … exceeding all major KPI forecasts and already competing against notable peers in this market,” although it did not provide any data to support this assessment.
Meyer Global Management is a New York-based investment firm managing a venture capital fund, private equity fund, multiple special purpose acquisition vehicles and a traditional long/short equity hedge fund.
PlayStar CEO Per Hellberg: “Meyer Global Management’s confidence in PlayStar to provide $15m to support us in a time of such economic uncertainty says a lot about PlayStar’s performance over the past few months.”
Meyer is seeking investment opportunities “at the forefront of innovation and believes PlayStar has the potential to grow substantially in the US,” it said, adding that its investment will help expedite that process.
“PlayStar is delighted to welcome Meyer Global Management as a shareholder in our business,” said PlayStar CEO Per Hellberg. “Their confidence in PlayStar to provide $15m to support us in a time of such economic uncertainty says a lot about PlayStar’s performance over the past few months.
“While several online gambling sites have been forced to cease operations in the past year, we’ve surpassed our initial forecasts and are well-positioned for further expansion.
“The funding from Meyer Global Management will enable us to build on this initial success as we grow our New Jersey operation and look to launch PlayStar in Pennsylvania.”
Owen E. H. Meyer, CEO of Meyer Global Management, added: “Meyer Global Management is an investment firm focused on identifying innovative technology companies that have long-term sustainability to deliver strong returns for our investors.
“What we’ve seen from PlayStar since it debuted in New Jersey a few months ago is very impressive and I believe that with our support, the company has the potential to be just as popular when it goes live in Pennsylvania.
“PlayStar’s management is very experienced in this industry and we look forward to continued momentum in player acquisition and retention,” he added.
PlayStar initially intended to launch in Pennsylvania by the end of 2022.