AGCO Fines NorthStar $100K Over Anti-Money Laundering Failures

The Alcohol and Gaming Commission of Ontario (AGCO) has issued a fine of $100,000 against NorthStar Gaming (Ontario) Inc. for allegedly failing to comply with provincial anti-money laundering (AML) requirements. Dr. Karin Schnarr, registrar and CEO of the AGCO, said iGaming operators are the first line of defence against criminal activity in the province’s gaming market. (Image: SBC) The fine comes after an investigation into betting activity by an individual charged by police in connection with Project Outsource, a joint law enforcement effort targeting criminal activity, including extortion and violence, in the towing industry. Player Crosses Deposit Threshold NorthStar Gaming (Ontario) Inc. is a wholly owned subsidiary of NorthStar Gaming Holdings Inc. and is the legal operator of NorthStarBets.ca, the licensed Ontario sportsbook and online casino. The player in question opened an account with NorthStar in March 2024 and reached the company’s player lifetime deposits threshold of $25,000 in the same month. The player’s deposits continued for more than a year. In December of that year, the player deposited $55,000. By June 2025, the individual’s deposits totaled $189,395, according to the AGCO, after its investigation. Required Safeguards Not Applied NorthStar’s own AML policies identify a player’s disclosed occupation as high risk and require that individual to be classified as high risk and undergo Enhanced Due Diligence (EDD), including a verification of the source of funds, once the player’s lifetime deposits reach that $25,000 limit. The company’s AML measures also required it to take escalating actions when money laundering risk indicators were identified, including refusing transactions. NorthStar failed to take those measures, the AGCO said. “Operators are the first line of defence against criminal activity in Ontario’s gaming market,” said Dr. Karin Schnarr, registrar and CEO of the AGCO. “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.” NorthStar Accepts Regulatory Findings In this case, the AGCO said it was not until June 2025, after inquiries by the AGCO, that NorthStar acted — classifying the player as high risk and terminating the account. Companies in the industry served with a penalty notice have the right to appeal to the independent Licence Appeal Tribunal 15 days after being served, but it doesn’t appear NorthStar will be taking that route, judging by a statement released by NorthStar Gaming Holdings Inc. late yesterday (Aug. 27). The company said it does not dispute the AGCO’s finding and has cooperated fully with the AGCO, adding that it has made “substantial investments” in its AML and compliance program. These included appointing a new vice president of compliance, adding compliance staff, and completing an independent external compliance effectiveness review. Company Strengthens AML Program “We take our AML obligations seriously, and we accept responsibility for the matters identified in this order,” said Corey Goodman, chief executive officer of NorthStar Gaming Holdings Inc. “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.” The post AGCO Fines NorthStar $100K Over Anti-Money Laundering Failures appeared first on Casino.org.