Ontario Regulator Fines NorthStar Gaming C$100,000 Over AML Control Failures
The Alcohol and Gaming Commission of Ontario (AGCO) has imposed a C$100,000 monetary penalty on NorthStar Gaming (Ontario) Inc. for alleged failures to comply with provincial anti-money laundering requirements.
According to the regulator, NorthStar’s own AML policies classified a player’s disclosed occupation as high risk and required the customer to be rated high risk and subjected to enhanced due diligence, including verification of source of funds, once lifetime deposits reached C$25,000.
The player opened an account in March 2024 and crossed the C$25,000 threshold in the same month. AGCO said NorthStar did not classify the customer as high risk, start the required EDD assessment or verify source of funds at that point.
Deposits continued for more than a year
NorthStar’s policies also required escalating measures when money-laundering risk indicators were identified, potentially including refusing transactions or excluding the player. AGCO said those measures were not taken.
Instead, the player continued depositing for more than a year. Deposits exceeded C$55,000 in December 2024 alone, and total deposits had reached approximately C$189,395 by June 2025.
AGCO’s compliance review was prompted after the player was charged by police in connection with Project Outsource, a joint law-enforcement operation targeting criminal activity in Ontario’s towing industry, including alleged extortion and violence. NorthStar classified the player as high risk and terminated the account only in June 2025, following AGCO inquiries.
The regulator said the penalty relates to alleged breaches of the Gaming Control Act, its regulations and Standard 6.03 of the Registrar’s Standards for Internet Gaming, which requires operators to identify, minimise and manage suspected money-laundering risk through risk-based controls and appropriate escalation.
NorthStar has the right to request a hearing before the Licence Appeal Tribunal within 15 days of being served with the monetary-penalty order. The action therefore remains subject to the applicable appeal process.
