AGCO Penalises NorthStar Gaming CA$100,000 Over AML Failures

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Altay Celikkaya

Content Manager

Updated: 01/09/26

Reading Time: 3 minutes

The Alcohol and Gaming Commission of Ontario (AGCO) has issued a CA$100,000 monetary penalty to NorthStar Gaming (Ontario) Inc after identifying failures in the operator’s anti-money laundering controls. The action concerned one high-risk player account active between March 2024 and June 2025. NorthStar’s policies required enhanced due diligence once lifetime deposits reached CA$25,000, but the account remained open until deposits totalled approximately CA$189,395.

NorthStar accepted the finding and agreed to settle the matter for CA$80,000. The case places renewed attention on whether operators can demonstrate that risk classifications, transaction monitoring and escalation procedures work in practice.

Ace Alliance graphic showing NorthStar Gaming and AGCO logos with the headline NorthStar Hit With CA$100K AML Penalty.

Regulation & Compliance

Key Takeaways from the NorthStar AML Penalty

AGCO imposed a CA$100,000 monetary penalty after identifying failures in NorthStar’s risk-based AML controls.
The player crossed a CA$25,000 lifetime deposit trigger in March 2024 without enhanced due diligence.
NorthStar did not verify the player’s source of funds or immediately classify the account as high risk.
Deposits continued until June 2025 and reached approximately CA$189,395 before the operator closed the account.
NorthStar accepted the findings, agreed to a CA$80,000 settlement and reported substantial compliance upgrades.

High-Risk Account Escaped Enhanced Checks

The player opened the NorthStar account in March 2024 and reached the operator’s CA$25,000 lifetime deposit threshold during the same month. The occupation disclosed by the customer was already identified as high risk under NorthStar’s own AML policies. Those combined indicators should have prompted a high-risk classification, enhanced due diligence and verification of the source of funds.

AGCO found that none of those steps occurred at the required time. France’s 2026 AML framework similarly requires enhanced vigilance for higher-risk player profiles, including professional activities that may create exposure to corruption or financial crime.

The compliance review began after the player was charged by police in connection with Project Outsource, a joint law enforcement operation targeting alleged extortion, violence and other criminal activity in Ontario’s towing industry.

Deposits Continued After Risk Indicators Emerged

NorthStar’s policies required escalating action when potential money-laundering indicators appeared. Available measures included refusing transactions or excluding the player where appropriate. AGCO said the operator did not apply those interventions, allowing deposits to continue for more than a year.

The player deposited more than CA$55,000 in December 2024 alone. By June 2025, lifetime deposits had reached approximately CA$189,395. NorthStar classified the account as high risk and terminated it only after AGCO made enquiries that month.

Comparable weaknesses in source-of-funds verification and delayed interventions also formed part of QuinnBet’s £609,104 UKGC compliance settlement. Both cases demonstrate why an AML programme must connect documented thresholds with timely decisions, clear ownership and evidence that alerts were investigated.

AGCO registrar and chief executive Dr Karin Schnarr said “anti-money laundering controls must be more than policies on paper”. She added that operators are the first line of defence against criminal misuse of Ontario’s regulated gaming market.

NorthStar Reports Compliance Programme Upgrades

NorthStar did not dispute AGCO’s finding and said it cooperated throughout the investigation. The company stated that it had invested substantially in its AML and compliance programme after the period covered by the order.

Reported measures include appointing a new vice-president of compliance, adding compliance staff and expanding the company’s Compliance Committee with experienced industry members. NorthStar also completed an independent review of compliance effectiveness, enhanced its risk-scoring and player-classification systems, and formalised escalation procedures.

AGCO Reinforces Accountability Across Ontario iGaming

Standard 6.03 of the Registrar’s Standards for Internet Gaming requires operators to identify, minimise and manage suspected money-laundering risks through reasonable, risk-based measures. AGCO said these measures include source-of-funds verification and stronger interventions when risk indicators warrant them.

The NorthStar order follows AGCO’s recent enforcement action over prohibited autoplay controls, showing that the regulator is examining operational safeguards across both account management and game delivery. Although the cases concern different standards, both demonstrate how oversight extends across Ontario’s regulated online casino market, from customer account controls to game delivery.

For B2B compliance teams, the NorthStar case highlights the importance of testing the complete control chain. A documented threshold has limited value unless it changes the customer’s classification, triggers review, produces a recorded decision and leads to proportionate action without avoidable delay.