Ontario Regulator Fines NorthStar Gaming Holdings Incorporated

In Canada, the Alcohol and Gaming Commission of Ontario (AGCO) regulator has ordered local iGaming operator NorthStar Gaming Holdings Incorporated to pay a fine of approximately $21,700 for failures in its geolocation software. 

Developed at the back end of the last century, geolocation technologies allow online gaming companies to ensure their entertainment is being enjoyed solely by punters in authorized territories. 

Regulators for many of the planet’s most prominent iGaming jurisdictions, including Ontario, now oblige licensed iGaming operators to employ such innovations so as to help stamp out money laundering, unregulated play, and terrorist financing concerns. 

Divergent Duo  

Toronto-headquartered NorthStar Gaming Holdings Incorporated is responsible through its NorthStar Gaming (Ontario) Incorporated subsidiary for the iGaming domain at NorthStarBets.ca, which is powered by technology from all-star software development firms Playtech and Kambi Group. 

Established in 2021, NorthStar Gaming Holdings Incorporated is moreover behind the online casino and sports betting site at NorthStarBets.com. However, unlike its compatriot, this domain is accessible to punters across the length and breadth of Canada thanks to being owned by the Quebec-based Abenaki Council of Wolinak and licensed by the Kahnawake Gaming Commission.  

Serious Sanction  

The AGCO declared it levied the penalty against NorthStar Gaming Holdings Incorporated after determining the operator’s geolocation technology was ‘failing to ensure’ NorthStarBets.ca was ‘accessible only to players in Ontario’. 

This sanction followed ‘a proactive third-party assessment’ of licensed Ontario iGaming operators conducted as part of its ‘ongoing compliance monitoring of the gaming sector’. 

“To protect the integrity and legality of Ontario’s gaming sector, games on gaming sites registered in Ontario may only be provided within Ontario unless they are conducted in conjunction with the government of another province,” read a statement from the AGCO.  

Observable Offense 

The AGCO Chief Executive Officer, Karin Schnarr, stated the fine comes after official tests conducted at sites in Quebec and New York revealed NorthStarBets.ca had been accessible to real-money players beyond the borders of Ontario with its geolocation technology having ‘failed to accurately identify the location of one of the devices’.

Astute Alliance 

Although the AGCO did not name the specific vendor of the penalized geolocation software, NorthStarBets.ca does list integrity solutions innovator GeoComply Solutions Incorporated as an official partner. This Vancouver-headquartered firm supplies an array of cybersecurity and geofencing technologies to a diverse club of iGaming brands, including American superstars BetMGM, FanDuel, and PokerStars. 

The AGCO will continue to engage with NorthStar Gaming (Ontario) Incorporated to ensure flagged geolocation issues ‘are appropriately addressed’ before warning that any future infractions 'may result in further enforcement action’. 

Swelling Scene  

Home to some 14.2 million people, Ontario is the most populated Canadian province and began licensing online casino and sports betting operators from May of 2022. 

The territory has since gone on to become one of North America’s most dynamic iGaming markets, with its club of 47 certified operators and 77 domains having chalked up about $1.74 billion in aggregated revenues for the twelve months to the end of March.

Martha Otton serves as the Executive Director for the giant province’s iGaming Ontario watchdog and explained these annual revenues came courtesy of an increase of 78% year-on-year in associated stakes to a little over $45.69 billion. 

“As the market matures into its third year, I look forward to building on this foundation of success with operators and other partners as they invest in Ontario so that Ontarians can continue to play with confidence,” Otton said.