AGCO Fines NorthStar Gaming $100,000 Over Anti-Money-Laundering Failures

^{Ontario’s gaming regulator has fined NorthStar Gaming $100,000 after the operator failed to flag a high-risk player’s account despite its own anti-money-laundering rules.}

The Alcohol and Gaming Commission of Ontario issued the penalty against NorthStar Gaming (Ontario) Inc. on Aug. 27 for alleged failures to comply with the province’s anti-money laundering requirements.

Online casinos in Ontario must maintain risk-based controls to identify, assess and respond to money-laundering risks.

The AGCO said NorthStar’s own AML policy required a player to be classified as high risk and undergo enhanced due diligence, including source-of-funds verification, once the player’s lifetime deposits reached $25,000.

The player, who had disclosed a high-risk occupation, opened an account with NorthStar in March 2024 and hit that $25,000 threshold within the same month.

NorthStar did not classify the player as high risk, initiate enhanced due diligence or verify the source of funds, according to the AGCO.

How the Case Came to Light

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

NorthStar’s policies also required escalating action, including refusing transactions or excluding the player, once money-laundering risk indicators were identified.

The AGCO said NorthStar did not take those steps.

Deposits Kept Growing

The player’s deposits continued for more than a year after the $25,000 threshold was crossed.

The player deposited more than $55,000 in December 2024 alone, and total deposits reached about $189,395 by June 2025, according to the AGCO.

NorthStar classified the player as high risk and closed the account in June 2025, only after the AGCO began asking questions.

That is more than a year after the company’s AML obligations were first triggered, the regulator said.

“Operators are the first line of defence against criminal activity in Ontario’s gaming market.”

Dr. Karin Schnarr, registrar and CEO of the AGCO, said anti-money laundering controls "must be more than policies on paper," adding that the AGCO will continue to hold operators accountable when they fall short of their public-protection obligations.

Penalty and Appeal Rights

The AGCO imposed the $100,000 penalty for alleged breaches of the Gaming Control Act, 1992, its regulations and the Registrar’s Standards for Internet Gaming.

Standard 6.03 of those standards requires operators to take reasonable measures to identify, minimize and manage suspected money-laundering activity.

NorthStar Gaming has the right to request a hearing before the Licence Appeal Tribunal within 15 days of being served the order, meaning the penalty is not yet final.

The fine comes on the heels of another AGCO enforcement action this month, a $120,000 penalty against Betty Gaming over age-verification failures that let underage players open accounts and gamble.