NorthStar Gaming Inc. has addressed a recent penalty levied against them by the Alcohol and Gaming Commission of Ontario (AGCO), entailing a $30,000 fine for alleged violations of the Gaming Control Act. The fine was imposed after AGCO’s assessment found that NorthStar Gaming failed to ensure their site, NorthStarBets.ca, was restricted to players within Ontario, among other violations.
During AGCO’s assessment, tests conducted from physical locations in Quebec and New York revealed that NorthStarBets.ca did not accurately identify the location of one of the devices, allowing access from outside Ontario. Additionally, AGCO cited NorthStar Gaming for “repeated failure to provide [AGCO] with data, information, and documents requested in a timely manner as required.”
A spokesperson for NorthStar Gaming Inc. expressed to Casino.org their commitment to regulatory compliance, highlighting their use of advanced technology and third-party vendors to maintain system integrity. The company is currently investigating the incident with their geolocation compliance vendor to determine the cause and implement remedial steps.
AGCO continues to collaborate with NorthStar to resolve the highlighted issues and has warned that further non-compliance could lead to additional enforcement actions. Dr. Karin Schnarr, Chief Executive Officer and Registrar of AGCO, emphasized the importance of regulatory oversight to ensure that Ontario’s gaming sector operates legally and in the public interest. Operators in Ontario reserve the right to appeal AGCO’s decisions to the independent Licence Appeal Tribunal.
Despite these challenges, NorthStar Gaming’s Q2 2024 financial results, released in August, painted a positive picture. The company reported $7.5 million CAD in revenue for the quarter ending June 30, marking a 61 percent increase from Q2 2023. Total wagers on NorthStarBets.ca reached $225.5 million in Q2, a 41 percent year-over-year increase. Moreover, the gross margin was $3.2 million in Q2 2024, a 69 percent increase from the previous year. Active players grew by 48 percent, and the cost per customer acquisition declined by 12 percent.