NorthStar Gaming will now pay CA$20,000 (US$13,900) instead of the originally announced CA$30,000 penalty levied by the Alcohol and Gaming Commission of Ontario (AGCO). The gaming operator successfully contested part of the fine, related to its compliance with a key regulation.
Initial Penalty Announcement
Back in October, AGCO issued a statement highlighting violations by NorthStar Gaming’s online platform, NorthStarBets.ca. The commission’s fine was based on two key issues:
- Failing to ensure that its platform was accessible only to users within Ontario, as required by law.
- Repeated delays in providing requested data and information to the regulator.
AGCO’s compliance monitoring team identified these breaches through tests conducted from Quebec and New York state, where they confirmed access to NorthStarBets.ca. This violated Standard 3.02, which restricts games on Ontario-registered gaming sites to within the province unless operated alongside another province’s government.
Additionally, NorthStar faced penalties for not meeting AGCO’s deadlines for submitting crucial documents and data about the alleged breaches.
Breakdown of the Penalties
Of the CA$30,000 penalty, CA$20,000 was attributed to NorthStar’s delayed responses to AGCO’s repeated information requests. The remaining CA$10,000 was tied to the allegation of failing to meet Standard 3.02.
The AGCO stated at the time that these violations raised concerns about NorthStar’s adherence to the province’s strict gaming compliance standards.
Resolution and Reduced Fine
On Monday, AGCO issued an updated statement acknowledging that NorthStar Gaming had cooperated in addressing the raised concerns. After reviewing additional evidence, AGCO determined that NorthStar did not, in fact, violate Standard 3.02.
“As a result, the AGCO has withdrawn the CA$10,000 portion of the penalties relating to Standard 3.02 and NorthStar has agreed to pay the remaining penalties,” read the statement.
NorthStar has since implemented measures to ensure compliance with Ontario’s gaming regulations. However, the CA$20,000 penalty remains in place for their failure to provide AGCO with timely information during the investigation.
Compliance Testing and its Impact
The initial tests by AGCO aimed to check the geolocation accuracy of gaming platforms registered in Ontario. The inability to correctly identify a user’s location, as discovered with NorthStarBets.ca, could potentially expose the platform to unauthorised access from outside Ontario.
These tests are critical in maintaining the integrity of Ontario’s gaming market, ensuring that operators abide by strict provincial boundaries. NorthStar’s failure to meet these standards was a significant factor in AGCO’s initial penalty decision.
Industry Implications
NorthStar’s case serves as a reminder for Ontario’s registered gaming operators about the importance of regulatory compliance. With Ontario’s gaming market continuing to grow, scrutiny from AGCO remains high. Operators are expected to adhere strictly to the province’s standards and respond promptly to regulatory requests.
Bullet points summarising AGCO’s key standards for operators:
- Gaming platforms must only be accessible within Ontario, unless partnered with another provincial government.
- Operators must respond to information requests from AGCO in a timely manner.
- Regular third-party compliance checks ensure adherence to these regulations.
NorthStar Gaming: A Closer Look
This isn’t the first time NorthStar Gaming has made headlines. The company has seen substantial growth in recent years, reporting a 240% increase in revenue earlier this year. Its partnerships, including an extended deal with Playtech, have strengthened its market presence in Ontario.
NorthStar’s ambitions don’t stop at Ontario. Recent updates suggest the company is eyeing an expansion into Alberta, backed by platform improvements and enhanced player acquisition strategies.
Broader Context
Ontario’s gaming sector has become increasingly competitive and tightly regulated since the province opened its market to private operators. AGCO’s oversight ensures that operators meet high standards of security, fairness, and geolocation accuracy, protecting both the province’s economy and players.
While NorthStar’s cooperation led to a reduced penalty, the incident highlights how even established players can face consequences for regulatory missteps. For other operators, it’s a lesson in staying proactive with compliance measures and maintaining open lines of communication with regulators.
