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The Alcohol and Gaming Commission of Ontario (AGCO) has fined NorthStar Gaming (Ontario) Inc. $100,000 for failing to meet provincial anti‑money laundering requirements.
Regulators said the company ignored its own rules when a player, flagged as high risk due to occupation, crossed the $25,000 deposit threshold in March 2024.
NorthStar’s policies required enhanced checks at that point, including verifying the source of funds, but the company did not act. The player continued depositing large sums for more than a year, reaching nearly $190,000 by June 2025.
The AGCO began reviewing the case after police charged the player in connection with Project Outsource, an investigation into criminal activity in the towing industry. NorthStar eventually closed the account, but only after inquiries from the regulator.
NorthStar breached Gaming Control Act
The AGCO’s findings show NorthStar failed to classify the player as high risk, did not carry out enhanced due diligence, and ignored escalating warning signs.
Its own rules required stronger measures, such as refusing transactions or excluding the player, yet deposits continued unchecked. In December 2024 alone, more than $55,000 was deposited.
Regulators said this delay breached the Gaming Control Act, its regulations, and the Registrar’s Standards for Internet Gaming, which demand operators take active steps to manage suspected money laundering.
Dr. Karin Schnarr, Registrar and CEO of the AGCO, spoke on the fine, saying, “Operators are the first line of defence against criminal activity in Ontario’s gaming market. 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.”
The regulator noted that NorthStar only acted in June 2025, more than a year after obligations were triggered.
NorthStar has the right to request a hearing before the Licence Appeal Tribunal within 15 days of receiving the order.
