Published on: October 19, 2024, 10:08h.
Last updated on: October 19, 2024, 10:08h.
NorthStar Gaming Inc. has responded to Casino.org after being penalized $30,000 by the Alcohol and Gaming Commission of Ontario (AGCO) for an alleged violation of the Gaming Control Act.
NorthStar Gaming was fined for not ensuring that their website, NorthStarBets.ca, is only accessible to players in Ontario. There were also other violations.
NorthStar Has the Option to Challenge AGCO Citation
During the AGCO assessment, tests were carried out from physical locations in Quebec and New York state to determine if Ontario gaming sites could be accessed from outside of Ontario. According to the assessment, NorthStarBets.ca failed to accurately determine the location of one of the devices.
The AGCO also accuses the operator of “repeatedly failing to provide [AGCO] with data, information, and documents in a timely manner as required.”
A spokesperson from NorthStar Gaming Inc. told Casino.org, “NorthStar Gaming Holdings places great importance on regulatory compliance. We employ advanced technology and third-party vendors 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.”
Second Quarter of 2024: 61% Revenue Growth Year Over Year
The AGCO is collaborating with NorthStar to address the highlighted issues. Failure to do so may result in further enforcement action, the statement indicated.
“Ontario’s gaming sector is carefully regulated to ensure it is conducted legally and in the public interest,” said Dr. Karin Schnarr, Chief Executive Officer and Registrar at AGCO. “The AGCO will continue to take all necessary steps to ensure that regulated gaming sites are operated with integrity and within the legal framework of the province.”
Operators in Ontario have the right to appeal the actions of the AGCO to the Licence Appeal Tribunal, which is independent of the AGCO.
NorthStar Investigating the Occurrence
According to their financial results for Q2 2024 (ending June 30) released in August, the company reported revenue of $7.5 million CAD (including managed services fees, net of bonuses, promotional costs, and free bets). This represented a 61% increase from Q2 2023.
Total wagers at NorthstarBets.ca amounted to $225.5 million in Q2, a 41% year-over-year increase. Gross margin in Q2 2024 was $3.2 million, a 69% year-over-year increase. Active players increased by 48%, while there was a 12% decrease in the cost per acquisition of a customer.