AGCO issues $100,000 monetary penalty to NorthStar Gaming for anti-money laundering control failures

TORONTO, Aug. 27, 2026 /CNW/ -- The Alcohol and Gaming Commission of Ontario (AGCO) has issued a $100,000 monetary penalty to NorthStar Gaming (Ontario) Inc. for alleged failures to comply with provincial anti-money laundering (AML) requirements.

Ontario's regulated gaming operators are required to have risk-based controls in place to identify, assess and respond to potential money laundering risks. These controls are an important safeguard against Ontario's regulated gaming sector being misused for criminal activity.

In this case, NorthStar Gaming's own AML policies identified a player's disclosed occupation as high risk and required the player to be classified as high risk and undergo Enhanced Due Diligence (EDD), including verification of source of funds, once the player's lifetime deposits reached $25,000.

The player opened an account with NorthStar in March 2024 and reached the $25,000 deposit threshold within the same month. Despite the player's disclosed occupation and the threshold being reached, NorthStar did not classify the player as high risk, initiate the required EDD assessment or verify the player's source of funds.

The AGCO's compliance review was prompted after the player was charged by police in connection with Project Outsource, a joint law enforcement effort targeting criminal activity, including extortion and violence, in the towing industry.

NorthStar's AML policies also required the company to take escalating action when money laundering risk indicators were identified, including refusing transactions or excluding the player where appropriate. NorthStar did not take those measures.

Instead, the player's deposits continued for more than a year. In December 2024 alone, the player deposited more than $55,000. By June 2025, total deposits had reached approximately $189,395.

It was not until June 2025, following inquiries by the AGCO, that NorthStar classified the player as high risk and terminated the account - more than a year after the company's AML obligations had first been triggered.

NorthStar Gaming has the right to request a hearing before the Licence Appeal Tribunal (LAT) within 15 days of being served with the Order of Monetary Penalty. LAT is an independent adjudicative body within Tribunals Ontario.

Dr. Karin Schnarr, Registrar and CEO of the AGCO, said:

"Operators are the first line of defence against criminal activity in Ontario's gaming market. Anti-money laundering controls must be more than policies on paper. When risk indicators are triggered, operators are required to take active steps to help protect Ontario's regulated gaming sector from being misused for criminal activity. The AGCO will continue to hold operators accountable when they do not meet these important public-protection obligations." 

Additional Information

The Registrar imposed a total monetary penalty of $100,000 against NorthStar Gaming (Ontario) Inc. for alleged breaches of the Gaming Control Act, 1992, its regulations and the Registrar's Standards for Internet Gaming.

Standard 6.03 of the Registrar's Standards for Internet Gaming requires operators to take reasonable measures to identify, minimize and manage the risk of suspected money laundering activity. This includes implementing risk-based controls and taking appropriate measures in response to indicators of potential money laundering, including source-of-funds verification and escalating interventions where warranted.

 About the AGCO

The Alcohol and Gaming Commission of Ontario (AGCO) is a provincial regulatory agency that oversees the alcohol, cannabis, gaming and horse racing sectors in Ontario. The AGCO is committed to protecting the public interest through a modern, risk-based regulatory framework that emphasizes compliance, integrity and public safety.

SOURCE Alcohol and Gaming Commission of Ontario

Media contact: AGCO Media Relations, [email protected]