NorthStar Gaming has run afoul of Ontario authorities over a geolocation test issue.

The Alcohol and Gaming Commission of Ontario (AGCO) has fined NorthStar Gaming (Ontario) Inc. $30,000 after an assessment found the operator had failed to identify that a test device trying to access its Ontario-only northstarbets.ca site was located outside the province.

NorthStar operates two NorthStar Bets-branded websites. The dot-ca website offers AGCO-licensed and regulated iGaming and online sports betting in Ontario, powered by the company’s leading technology and services partners Playtech and Kambi. The dot-com version is owned and operated by the Abenaki Council of Wolinak and is licensed by the Kahnawake Gaming Commission, offering services to Canadians outside Ontario.

The regulator stated that as part of its ongoing compliance monitoring of the gaming sector, AGCO identified the issue with northstarbets.ca during “a proactive, third-party assessment” of multiple registered internet gaming operators. Tests were conducted from physical locations in Quebec and New York state to determine whether Ontario gaming sites were accessible outside Ontario. AGCO found one instance of northstarbets.ca failing to accurately identify the location of one of the devices during the tests.

“NorthStar Gaming takes regulatory compliance very seriously,” a company spokesperson told Canadian Gaming Business. “We employ the most advanced technology and third-party vendors in order to maintain the integrity of our systems. We are investigating this incident with our geolocation compliance vendor to uncover the possible causes of the incident and identify any remedial steps.”

While the spokesperson did not name that geolocation compliance vendor, the northstargaming.ca website lists Vancouver-based geolocation leader GeoComply as a partner.

In addition to the geolocation test violation, the $30,000 fine reflects two further breaches of the AGCO standards for iGaming.

The commission further cited NorthStar for “repeated failure” to provide the Registrar with requested data, information and documents in a timely manner. The AGCO asserted that NorthStar failed to show “a commitment to character, integrity and high ethical values demonstrated through attitude and actions” and engage with the Registrar “in a transparent way.”

“Ontario’s gaming sector is carefully regulated to ensure it’s conducted legally and with the public interest in mind,” said AGCO CEO and Registrar Dr. Karin Schnarr. “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.”

The AGCO says it will continue to engage with NorthStar to ensure the issues are appropriately addressed. Failure to do so may result in further enforcement action.

In happier news for the Canadian operator, NorthStar launched its improved Sports Insights 2.0 content vertical across all NorthStar Bets platforms last week.

Through Sports Insights, NorthStar provides its users with a range of sports and gaming analysis, betting strategies and predictions and tips aimed at augmenting the bettor experience.

The rollout of NorthStar Insights 2.0 had been teased by NorthStar in its Q2 2024 earnings release and call.

In August, the company reported that net revenue rose 61% year over year in the quarter to reach $7.5 million, while total wagers on NorthStar Bets rose 41% to an all-time high of $225.5 million. That record Q2 exceeded the previous record set in Q1 of this year, when NorthStar Bets took $218 million in handle, GGR of $7 million and net revenue of $5.9 million.

The CEO told investors that one of NorthStar’s major priorities moving forward is to explore how best to monetize the remainder of the Canadian market outside Ontario. In particular, the company wants to increase its operational footprint in Western Canada. Moskowitz noted that this approach should give NorthStar “a headstart” if and when other provinces open a regulated commercial online betting market.