The Alcohol and Gaming Commission of Ontario (AGCO) has issued a CAD$30,000 penalty to Northstar Gaming for failing to ensure that its NorthStarBets.ca site was accessible only to players in Ontario.

As part of its ongoing compliance monitoring of the gaming sector, the AGCO identified the issue with NorthStarBets.ca during a proactive, third-party assessment it undertook of registered iGaming operators.

Tests were conducted from physical locations in Quebec and New York state to determine whether Ontario gaming sites were accessible outside of Ontario.

During the assessment, NorthStarBets.ca failed to accurately identify the location of one of the devices.

The AGCO is further citing the operator for its repeated failure to provide the Registrar with data, information and documents requested in a timely manner as required.

In addition to the penalty, the AGCO is continuing to engage with the operator to ensure the issues are appropriately addressed. Failure to do so may 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,” said AGCO CEO and registrar 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.”

Operators served with an Order of Monetary Penalty have the right to appeal the Registrar’s action to the Licence Appeal Tribunal (LAT), an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.

Shares in NorthStar Gaming Holdings Inc (TSX:BET) closed at $0.04 per share in Toronto Wednesday.