NorthStar Gaming Fined for Geolocation and Compliance Issues in Ontario

The Alcohol and Gaming Commission of Ontario (AGCO) has imposed a $30,000 fine on NorthStar Gaming (Ontario) Inc. for failing to restrict access to their NorthStarBets.ca platform to players within the province. This regulatory action stems from AGCO’s findings during a routine compliance check, which revealed the operator’s geolocation system was unable to correctly the location of s outside Ontario.

AGCO identified the issue during an assessment that involved third-party testing of internet gaming sites ed in the province. As part of this evaluation, tests were conducted from locations in Quebec and New York state, where s were able to access NorthStarBets.ca, highlighting a serious failure in the company’s geolocation measures. The commission’s findings were made public through a press release issued on October 16, 2024.

Dr. Karin Schnarr, Chief Executive Officer and Registrar of AGCO, emphasized the significance of the violation, noting, “Ontario’s gaming sector is carefully regulated to ensure it’s conducted legally and with the public interest in mind. The AGCO will continue to take all appropriate steps to ensure that regulated gaming sites are operated with integrity and within the province’s legal framework.”

Geolocation Failure Identified

The core issue involved the platform’s inability to accurately detect the location of one device during AGCO’s compliance tests. Ontario’s gaming regulations require all online gaming platforms to implement geolocation services that ensure players are within the province when accessing gaming content. Exceptions to this rule only apply when the games are offered in collaboration with another province’s government.

AGCO also mandates that operators regularly monitor the location of s after their initial access, blocking any attempts to play from outside Ontario. These rules are part of the Registrar’s Standards for Internet Gaming, which require operators to use advanced tools to detect any software or programs that could potentially by geolocation measures. NorthStar’s failure to adhere to these standards led to the violation.

In response, the AGCO stressed the importance of integrity and transparency in its ongoing efforts to regulate Ontario’s online gaming sector. The commission further cited NorthStar for not promptly providing necessary documents and data requested during the investigation. AGCO has made it clear that the company must work to resolve these issues or face further enforcement actions.

Ongoing Compliance Monitoring

NorthStar Gaming, which launched its platform in April 2022, remains under scrutiny by AGCO as part of the regulator’s continued efforts to maintain compliance across all gaming operators in the province. In addition to the geolocation violations, NorthStar was also found guilty of not submitting the required information and documents to AGCO in a timely manner. This failure to cooperate with regulatory demands is another serious breach of the standards laid out in Ontario’s Gaming Control Act.

Operators that receive monetary penalties, like NorthStar, have the right to challenge the decision through the Licence Appeal Tribunal (LAT), an independent body that handles such disputes. The AGCO’s actions, however, underline the agency’s commitment to ensuring that gaming operators adhere strictly to Ontario’s legal and regulatory frameworks.

The geolocation breach could also have broader implications for NorthStar’s ambitions, as the company plans to expand into other provinces. While Alberta is expected to be the next province to launch its commercial online gambling market, NorthStar has not yet secured licensing for operations outside Ontario. Until the issues with geolocation and regulatory compliance are resolved, the operator’s expansion plans may face significant hurdles.

As AGCO continues its regulatory oversight, it remains focused on ensuring that operators like NorthStar Gaming maintain the highest levels of compliance. Failure to address these issues could result in more severe penalties or potential license revocation. The case highlights the importance of geolocation technology in the modern gaming landscape and serves as a reminder to operators of the need for ongoing vigilance in meeting regulatory requirements.

Source:

“AGCO Issues $30,000 Penalty to NorthStar Gaming (Ontario) Inc“, agco.ca, October 16, 2024.