The Alcohol and Gaming Commission of Ontario (AGCO) has imposed a fine of $100,000 on NorthStar Gaming (Ontario) Inc. for allegedly breaching provincial anti-money laundering (AML) regulations.
The penalty stems from an examination of betting activities of an individual linked to Project Outsource, an initiative aimed at addressing criminal actions such as extortion and violence in the towing sector.
Player Exceeds Deposit Threshold
NorthStar Gaming (Ontario) Inc. is a subsidiary of NorthStar Gaming Holdings Inc. and operates NorthStarBets.ca, a licensed sportsbook and online casino in Ontario.
One player registered with NorthStar in March 2024 and reached the $25,000 lifetime deposit limit in the same month.
Subsequent deposits continued, with a total of $189,395 deposited by June 2025 according to AGCO’s investigation.
Neglected Safeguards
NorthStar’s AML guidelines designate players with a disclosed high-risk occupation to undergo Enhanced Due Diligence (EDD) once their lifetime deposits reach $25,000. The company failed to implement these measures, despite identifying money laundering risk indicators.
Dr. Karin Schnarr, the AGCO’s registrar and CEO, stressed the importance of active AML controls to safeguard Ontario’s gaming sector against criminal misuse.
Acceptance of Regulatory Findings
After AGCO’s queries, NorthStar labeled the player as high risk in June 2025 and closed the account.
While companies can appeal penalty notices within 15 days, NorthStar Gaming Holdings Inc. appears to accept AGCO’s verdict. The company affirmed compliance with AML standards through investments in personnel and compliance procedures.
Enhanced AML Program
Corey Goodman, NorthStar Gaming Holdings Inc.’s CEO, acknowledged the identified issues and highlighted the company’s commitment to upholding AML obligations and enhancing compliance practices as an authorized internet gaming operator in Ontario.