The Ontario Securities Commission (OSC) has announced a failure-to-file cease trade order (FFCTO) against NorthStar Gaming Holdings Inc. for not submitting audited annual financial statements for 2025, along with the associated discussion and analysis, and the necessary executive certifications.

Trading Halted

The regulatory authorities stop all trading of NorthStar’s securities in Canada. The firm revealed that its external auditor notified the company that it was retracting its audit report. The annual meeting of the company, which was set for May 25, 2026, has also been rescheduled.

The auditor retracted its report on last year’s figures, stating that it could not depend on controls regarding a crucial vendor’s player account management software.

The company opposed and is collaborating with the vendor to maintain data integrity, but the OSC turned down NorthStar’s appeal for a more lenient management cease trade order, not believing that all issues would be resolved quickly enough.

Platform Continues to Accept Wagers

NorthStar Gaming Holdings Inc. obtained its Ontario iGaming license in April 2022, launching its online casino and sports betting platform, NorthStar Bets, in the subsequent month.

Although the stock is currently halted on the TSX Venture Exchange, the OSC ruling does not affect wagering on NorthStar Bets.

The main betting platform is functioning as usual. Once the vendor audit problem is resolved, the company can submit the audited reports and then request the OSC order to be removed.

In December, the company revealed changes in leadership – Michael Moskowitz, who was the Chief Executive Officer when the company acquired its license, departed, with Corey Goodman stepping in as Interim CEO.

Adjustments in Management

In March, the company released a statement outlining its strategic priorities, which it identified as disciplined execution, efficient capital allocation, and enhancing the company’s profitability profile.

We are focused on taking deliberate, measured steps to position the Company for profitability,” said Goodman. “The expected annualized G&A savings reflect measures that have largely been implemented. Building on these reductions, management is actively deploying additional efficiency and operating leverage initiatives across services, marketing spend, and cost of goods sold that are expected to materially enhance the Company’s EBITDA profile.

“In parallel, targeted investments in the product experience are being made to improve retention and increase the stability and predictability of revenue over time,” the statement concluded.