NorthStar Responds to AGCO Fine for Alleged Gaming Control Act Violation

Posted on: October 19, 2024, 10:08h. 

Last updated on: October 19, 2024, 10:08h.

Mark Keast Read More

Expertise: Canadian Gaming, iGaming, Las Vegas, Sports Betting, NFL, Boxing, UFC.

NorthStar Gaming Inc. has issued a statement to Casino.org following the news they were fined $30,000 by the Alcohol and Gaming Commission of Ontario (AGCO) for an alleged Gaming Control Act violation.

NorthStar Gaming was fined for failing to ensure that their site, NorthStarBets.ca, is accessible only to players in Ontario. There were also other violations.

NorthStar Can Appeal AGCO Citation

As part of AGCO assessment, tests were conducted from physical locations in Quebec and New York state to determine whether Ontario gaming sites were accessible outside of Ontario. During the assessment, the AGCO said that NorthStarBets.ca failed to accurately identify the location of one of the devices.

The AGCO is also citing the operator for “its repeated failure to provide [AGCO] with data, information, and documents requested in a timely manner as required.”

Said a spokesperson from NorthStar Gaming Inc., to Casino.org: “NorthStar Gaming Holdings takes regulatory compliance very seriously. We employ the most advanced technology and third-party vendors in order to maintain the integrity of our systems.

“We are investigating this incident with our geolocation compliance vendor to uncover the possible causes of the incident and identify any remedial steps.”

Q2 2024: 61% Year Over Year Revenue Increase

AGCO is working with NorthStar to ensure that the issues highlighted are addressed. Failure to do so may result in further enforcement action, the statement said.

“Ontario’s gaming sector is carefully regulated to ensure it’s conducted legally and with the public interest in mind,” said Dr. Karin Schnarr, Chief Executive Officer and Registrar, AGCO. “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.”

Operators in Ontario have the right appeal the AGCO’s actions to the Licence Appeal Tribunal, independent of the AGCO.

NorthStar Investigating the Incident

According to their Q2 2024 fiscal results (ended June 30) released in August, the company reported revenue of $7.5 million CAD in revenue (including managed services fees, net of bonuses, promotional costs and free bets). That was a 61 per cent increase from Q2 2023.

Total wagers at NorthstarBets.ca were $225.5 million in Q2. That was a 41 per cent increase year-over-year. Gross margin was $3.2 million in Q2 2024, a 69 per cent year-over-year increase. Active players grew 48 per cent, along with a 12 per cent decline in cost per acquisition of a customer.