Ontario regulator fines NorthStar Gaming for geolocation fail

Neha Soni October 21, 2024

Gambling operator NorthStar Gaming has been penalised by gambling watchdog Alcohol and Gaming Commission of Ontario for alleged breaches of the province’s iGaming regulatory framework. The operator has been hit with a C$30,000 ($21,800) fine.

The Commission has fined the gambling operator because it allegedly failed to prevent customers outside of Ontario from accessing its NorthStarBets.ca website. This is a direct breach of existing regulatory frameworks, which define that operators should prevent customers outside the province from accessing their websites “unless they are conducted in conjunction with the government of another province,” as explained by the AGCO.

Regulatory assessment

This comes as the regulatory watchdog recently undertook a third-party assessment on licenced iGaming operators. The assessment was conducted from locations outside Canada, one of which was New York and the other Quebec. The AGCO’s assessment was conducted from the two locations to find that “NorthStarBets.ca failed to accurately identify the location of one of the devices.”

Additionally, the AGCO said it would continue to monitor and work with NorthStar Gaming and that additional violations could result in “further enforcement action.”

“Ontario’s gaming sector is carefully regulated to ensure it is conducted legally and with the public interest in mind,” Dr. Karin Schnarr, CEO and registrar for the AGCO said via a press release. “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.”

Additional violations

Apart from the monetary penalty, NorthStar Gaming received a citation from the AGCO. The regulatory watchdog confirmed that the citation is due to the operator’s “repeated failure to provide the registrar with data, information and documents requested in a timely manner as required.” Referencing the Gaming Control Act in Ontario, the AGCO alleged that NorthStar Gaming breached various provisions, which are 3.02, 1.01 and 1.13.

The issued monetary penalty can be appealed to the independent of the AGCO tribunal, the License Appeal Tribunal (LAT). Both parties will continue to collaborate to resolve the uncovered issues. However, the AGCO has not ruled out additional enforcement action against NorthStar gaming in case the issues are not resolved.

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