AGCO issues monetary penalty to NorthStar Gaming for anti-money laundering control failures

NorthStar Gaming has been hit with a CA$100,000 monetary penalty for alleged failures to comply with anti-money laundering (AML) requirements in Ontario.

The monetary penalty from the Alcohol and Gaming Commission of Ontario (AGCO) relates to a single player account between March 2024 to June 2025. 

During this period, the AGCO found that NorthStar did not meet the enhanced due diligence requirements of the Registrar’s Standards for Internet Gaming, applicable to a player whose recorded occupation and deposit activity required escalated monitoring. 

Under the province’s regulations, any player classified as high risk must undergo enhanced due diligence (EDD), including verification of source of funds, once the player’s lifetime deposits reach $25,000.

Despite the player’s disclosed occupation as high risk and the threshold being reached, NorthStar did not classify the player as high risk, initiate the required EDD assessment, or verify the player’s source of funds.

NorthStar’s AML policies also required the company to take escalating action when money laundering risk indicators were identified, including refusing transactions or excluding the player where appropriate. NorthStar did not take those measures.

Instead, the player’s deposits continued for more than a year. In December 2024 alone, the player deposited more than $55,000 and by June 2025, total deposits had reached approximately $189,395.

It was not until June 2025, following inquiries by the AGCO, that NorthStar classified the player as high risk and terminated the account – more than a year after the company’s AML obligations had first been triggered.

The AGCO’s compliance review was prompted after the player was charged by police in connection with Project Outsource, a joint law enforcement effort targeting criminal activity, including extortion and violence, in the towing industry.

Dr. Karin Schnarr, registrar and CEO of the AGCO, said: “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 AGCO will continue to hold operators accountable when they do not meet these important public-protection obligations.” 

NorthStar does not dispute the AGCO’s finding and has cooperated fully with the AGCO throughout the investigation.

The company said it has made substantial investments in its AML and compliance program, including the appointment of a new vice president of compliance and additional compliance staff, and the expansion of its Compliance Committee with experienced industry members.

It has also completed an independent external compliance effectiveness review, made material enhancements to its risk scoring and player classification systems, and formalised escalation procedures.

“We take our AML obligations seriously and we accept responsibility for the matters identified in this Order,” said Corey Goodman, CEO of NorthStar. “The conduct at issue is confined to a specific period that is now behind us. We have invested significantly in our compliance program since then and we are committed to meeting the highest standards expected of us as a licensed internet gaming operator in Ontario.”

NorthStar has the right to request a hearing before the Licence Appeal Tribunal (LAT) within 15 days of being served with the Order of Monetary Penalty. LAT is an independent adjudicative body within Tribunals Ontario.

Trading in NorthStar Gaming Holdings (TSXV:BET) shares has been suspended since a cease trade order was issued on May 8.