AGCO fines NorthStar Gaming CA $30,000 for geolocation fail

NorthStar Gaming’s NorthStarbets.ca is available to consumers outside of Ontario, the Alcohol and Gaming Commission of Ontario (AGCO) discovered. In a Wednesday (16 October) press release, the agency announced that it is fining NorthStar CA$30,000 (US$21,741/£16,712/€20,082)) for the violation.

Wagering and igaming platforms in Ontario are required to use geolocation services to ensure customers are located within the province. The Canadian government in August 2021 announced it was decriminalising single-event wagering. Ontario so far is the only province in which commercial online gambling is available.

Other provinces offer digital gambling through their lotteries, but do not yet have open, competitive markets. The expectation is that the next province to launch digital gambling will be Alberta.

According to the AGCO, it discovered the violation during a “third-party assessment” earlier this year. “Tests were conducted from physical locations in Quebec and New York state to determine whether Ontario gaming sites were accessible outside of Ontario,” reads the press release.”During the assessment, NorthStarBets.ca failed to accurately identify the location of one of the devices.”

AGCO issues additional violations
NorthStar was also cited for failing to provide data, information and other documents to the registrar in a “timely manner.” In addition to the fine, the AGCO said that it will continue to monitor and work with NorthStar Gaming. Additional violations could result in “further enforcement action.”

“Ontario’s gaming sector is carefully regulated to ensure it’s conducted legally and with the public interest in mind,” Dr. Karin Schnarr, CEO and registrar for the AGCO said via press release. “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 services allow gaming operators to determine if consumers are inside or outside of a “goefence” surrounding a legal gaming area. The company plans to expand its reach to other Canadian provinces as they go live. But it does not currently have approval to launch in other provinces. NorthStarbets.ca is not licenced in New York state in the US. NorthStarbets.ca went live in Ontario in April 2022.