In Canada, the Alcohol and Gaming Commission of Ontario (AGCO) fined NorthStar Gaming $30,000 for failing to comply with provincial gaming regulations. A third-party review of the company revealed that NorthStar had been accepting wagers outside of Ontario. That is prohibited in Ontario. Laws mandate that online gaming in Ontario is limited to residents in that province. The AGCO acted appropriately by fining NorthStar.
What is the history of NorthStar Gaming?
NorthStar Gaming was founded in 2021 and was later launched by NorthStar Bets Sportsbook in May 2022. Earlier in 2024, NorthStar reported over $1 billion in total wagers since its launch. Total revenue in 2023 hit $19.4 million. That was a whopping 240% increase from the $5.7 million generated in 2022. In Q1 of 2024, NorthStar’s handle hit $218 million and then $226 million in Q2. Both were new records and the company hasn’t released its Q3 figures yet.
Since allowing outside residents to wager on their Ontario sportsbook, NorthStar Gaming is working closely with the AGCO. They want to ensure that the sportsbook never runs into that issue again. If NorthStar fails to make changes in the future, there could be more rules enforced by AGCO.
In 2022, AGCO gave NorthStar Gaming its online gaming operator license. That was less than two weeks after Ontario officially opened its iGaming market. NorthStar was one of the first regulated markets in Ontario. Data from AGCO states that an estimated 86.4% of online gamblers use a regulated market.
How successful is Ontario’s regulated gambling market?
The Alcohol and Gaming Commission of Ontario (AGCO) has been around since 1998. They are in charge of regulating the provinces’ alcohol, gaming, and horse racing industries. This includes land-based casinos that are conducted and managed by the Ontario Lottery and Gaming Commission (OLG) and online wagering.
iGaming Ontario (IGO) is a subsidiary of AGCO. They were founded in 2021 to help regulate the iGaming market in the province. As of this year, Ontario has more than 60 online casinos available for residents. That includes major sportsbooks like DraftKings, FanDuel, Caesars, BetMGM, and bet365. Additionally, the province is home to over 30 sports betting sites.
