The Alcohol and Gaming Commission of Ontario (AGCO) has fined Canadian-owned gaming operator NorthStar Gaming $30,000 for failing to comply with provincial gaming regulations.
A third-party review of licensed iGaming operators revealed that NorthStarBets.ca failed to restrict access to bettors outside Ontario. Provincial law mandates that online games are limited to players within Ontario unless an agreement exists with the government of another province. According to an AGCO news release, NorthStar’s actions violated section 3.8 of the Gaming Control Act.
“Ontario’s gaming sector is carefully regulated to ensure it’s conducted legally and with the public
interest in mind," said AGCO CEO and registrar Dr. Karin Schnarr. "The AGCO will continue to take all appropriate steps to ensure that regulated gaming sites are operated with integrity and within the province’s legal framework.”
The AGCO also cited NorthStar for failing to provide the required information and documents on time.
The Alcohol and Gaming Commission of Ontario announced today it hit NorthStar Gaming, owner of NorthStar Bets, with a $30K fine for failing to ensure only players in Ontario can access the site and for not providing data, info, and docs in a timely manner. But there's more… pic.twitter.com/12jTfwFeeK
— Geoff Zochodne (@GeoffZochodne) October 17, 2024
About NorthStar Gaming
NorthStar Gaming was founded in 2021 and launched its NorthStar Bets sportsbook in May 2022. Earlier this year, the operator reported over $1 billion in total wagers since launch, with total revenue for 2023 reaching $19.4 million. The total marked a remarkable 240% increase compared to the $5.7 million generated in 2022.
“We delivered very strong growth in our first full year of operations, with revenue and customers increasing sequentially in every quarter,” stated Michael Moskowitz, chair and CEO of NorthStar.
NorthStar has yet to publish its Q3 financials, following record-breaking results in Q1 and Q2. Handle reached $218 million in Q1 and almost $226 million in Q2.
What’s next for NorthStar?
The AGCO is working closely with NorthStar to ensure the issues are resolved. If the operator fails to address the violations adequately, further enforcement measures may follow.
NorthStar Gaming received its online gaming operator license from the commission in April 2022, less than two weeks after the province officially launched its iGaming market.
Ontario continues its efforts to move players from unregulated platforms to licensed ones. Before the iGaming launch, the provincial government estimated that 70% of online gambling occurred on unregulated sites. Recent findings from market research firm Ipsos show that 86.4% of online gamblers in Ontario now use regulated platforms.
Ontario’s gambling market
Founded in 1998, the AGCO regulates the province’s alcohol, gaming, and horse racing industries. This includes land-based casino locations conducted and managed by the Ontario Lottery and Gaming Commission (OLG) and online gambling. Karin Schnarr was appointed CEO and Registrar in 2023, following the announcement of Tom Mungham’s retirement.
The AGCO subsidiary, iGaming Ontario (iGO), was founded in 2021 to oversee the expanded iGaming market in Ontario. As of 2024, Ontario is home to more than 60 online casinos, including operators such as Caesars Palace, FanDuel, DraftKings, BetMGM, and bet365. There are also currently over 30 Ontario sports betting sites.
