Ontario’s gambling regulator fined iGaming operator NorthStar Gaming, alleging the company failed to stop a high-risk player from gambling on its platform despite apparent money laundering risks.
The Alcohol and Gaming Commission of Ontario (AGCO) this week issued a $100,000 monetary penalty to NorthStar Gaming, writing that the operator did not comply with provincial anti-money laundering (AML) requirements.
Canadian Gaming Business reached out to NorthStar Gaming for comment, but had not heard back as of the time of publishing.
What NorthStar allegedly did to violate Ontario rules
According to information from the AGCO, NorthStar Gaming allowed a player whom it should have flagged as high-risk to deposit more than $189,000 over more than a year. Enhanced Due Diligence (EDD) rules require players tagged as such to undergo funds verification and additional scrutiny after $25,000 in deposits.
The player in question opened a NorthStar Gaming account in March 2024 and reached that threshold within a month. By June 2025, the player reached $189,395, and NorthStar finally responded to an AGCO inquiry by banning them.
It turned out police charged the person in connection with Project Outsource, a “joint law enforcement effort targeting criminal activity, including extortion and violence, in the towing industry.”
Anti-money laundering controls must be more than policies on paper,” AGCO Registrar and CEO Dr. Karin Schnarr said in a statement that anti-money laundering controls “must be more than policies on paper.”
“When risk indicators are triggered, operators are required to take active steps to help protect Ontario’s regulated gaming sector from being misused for criminal activity,” she added. “The AGCO will continue to hold operators accountable when they do not meet these important public-protection obligations.”
NorthStar Gaming has 15 days to appeal the decision.
Not the only operator in AGCO sights
NorthStar’s fine comes on the heels of an Ontario supplier running afoul of the regulator this month.
Booming Games accepted a $70,000 penalty in relation to a provincially banned auto-play feature that was made available to Ontario players for several months on multiple slot games.
“We accept the AGCO’s ruling and take full responsibility for the breach,” Booming Games COO Dani Paleu told Canadian Gaming Business.
The AGCO has also punished other operators for various infractions in recent months.
In one such incident, last October, it fined theScore Bet $105,000 for a failure to address a user’s high-risk gambling despite “clear red flags”. In July of this year, it penalized Great Canadian Entertainment by fining the brick-and-mortar casino operator $170,000 after finding that it allegedly failed to adequately identify high-risk patrons, monitor player transactions, report suspicious activity, or file suspicious transaction reports at one of its Toronto-area casino resorts.
NorthStar financial troubles in spotlight
The AGCO action arrives as NorthStar Gaming finds itself in much deeper jeopardy.
The operator disclosed major financial trouble late last year, including a net loss of $13.7m for the nine months ending Sept. 30, 2025. Public trading of its shares paused indefinitely in May after NorthStar failed to file audited financial disclosures.
The company appointed interim CEO Corey Goodman to the permanent position on Aug. 17. At the same time, NorthStar announced that CFO Chin Dhushenthen stepped down after five years with the operator.
NorthStar also welcomed Krisztina Kalla as its new VP of Compliance, completing an overhaul of the C-suite as it seeks to emerge from a turbulent period.
“I am confident that the strengthened finance and compliance functions will serve the company well as we move forward,” added Goodman.
Canadian Gaming Business Editor Tom Nightingale contributed to this article.
