Remote Gaming License
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Canada Remote Gaming License
Gaming online in Canada has always been seen as a grey area in Canadian law when it comes to its legality. Especially so when considering the diverse opinions from around the world surrounding legal gambling.
Gaming online in Canada has always been seen as a grey area in Canadian law when it comes to its legality. Especially so when considering the diverse opinions from around the world surrounding legal gambling. However, in the past few years, there have been a few provinces that started their own online gambling casinos. Some of these casinos are attempting to suggest that offshore operators are operating illegally, yet there is nothing in Canadian law that supports this.
The reality is that online gambling in Canada is becoming increasingly popular. Casinos.co estimate that over 70% of Canadians have gambled in the past year. But it’s far more confusing in reality and to date, the Federal Government has yet to enact any specific legislation in relation to online gambling.
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Kahnawake Gambling Jurisdiction
The Mohawk Territory of Kahnawake is an Indian reserve of just over 8,000 in Quebec, Canada. The reserve has about 48.05 square kilometers. There are eight Kanien (’kehá:ka) territories that are part of the Mohawk Nation, and Kahnawake is one of them. The Kahnawake have conducted diplomacy with the French and British for centuries, fought against American forces during the War of 1812, and suffered through the indignities of the 1876 Indian Act.
When the gambling industry went online, Kahnawake was one of the first regions in the world to recognize the potential that the industry had.
Subsequently, it became one of the earliest gambling jurisdictions in the world and is today home to the Kahnawake Gaming Commission. Basically, the Commission provides gaming licenses to online casinos, poker rooms, sportsbooks, and other online gambling outfits.
The Commission has stringent provisions that the applicant has to adhere to for it to be granted a license to operate as an online gambling provider.
Benefits of the Kahnawake Gaming License
Obtaining an online gambling license from the Kahnawake Gaming Commission offers a wide range of benefits. These have made this Canadian jurisdiction one of the top locations for established and/or established gambling companies. Here are just a few of the benefits of a Kahnawake online gambling license.
- Speed. Although obtaining a Kahnawake license is not as quick as obtaining a license in Curacao, it is possible to obtain it in a relatively short period of time. Of course, the speed depends on the speed of sending the documentation and the compliance of the documents with the requirements. The application process usually takes 4-6 weeks and if everything is fine, the approval can take another 6-8 weeks. This makes Kahnawake one of the fastest jurisdictions to obtain an online gambling license.
- Simplicity. The amount of documents required in Kahnawake to apply for an online gambling license is significantly reduced compared to other jurisdictions. Compared to Curacao, there are several tasks to be performed, such as questionnaires and supporting documentation to be provided, the task being smaller. Moreover, if you hire Szilaghi Consulting to help you with the process, you can further reduce stress.
- Credibility for players. The Kahnawake Gaming Commission is recognized for its respectability and Canadian jurisdiction is considered a place of trust. Holding a Kahnawake gaming license implies responsible and fair gaming practices and that the entity is not fraudulent in any way. The Commission is dedicated to supervising and monitoring licensees, which increases players’ loyalty and trust in gambling platforms. The gambling commission carefully analyzes all user complaints, and companies that break the rules are suspended. Some operators have revoked their licenses following investigations that revealed unethical business practices. This dedication to regulatory efforts has led to a high level of player protection for players and business partners.
- Excellent option for startups or small gaming businesses. Due to the listed benefits and profitability, Szilaghi Consulting recommends the Kahnawake online gambling license for start-ups or small companies. This means that profits can be reinvested in the business to help expand, grow the business, market and integrate new games, rather than paying considerable taxes and fees.
- Zero Tax. Those with a Kahnawake game license can enjoy a 0% fee on all gross gaming revenue. Thus, companies keep expenses low and focus on reinvesting revenue and profit in expanding the company.
- Reduced application fees. The application fees for a Kahnawake betting license are some of the lowest in the industry. Although not as low as Curacao, they are in an accessible spot for many start-ups and small companies. With lower fees than Malta or other European jurisdictions, the Kahnawake jurisdiction offers a comprehensive and respectable license that allows a larger portion of capital to be invested in the product than in administrative processes.
The Kahnawake Gaming Commission
The Kahnawake Gaming Commission was first set up in 1996, on the 10th of June. The establishment of the Commission became possible once the Mohawk Council of Kahnawake passed what is known as the Kahnawake Gaming Law (MCR No. 26 / 1996-97).
On July 8th, 1999, the Commission, for the first time, enacted its regulations concerning Interactive Gaming. Since then, the Commission has steadily been engaged in licensing and regulating online gambling outfits from all over the world.
The Kahnawake Gaming Commission is basically a regulatory body that grants online gambling licenses to organizations looking to provide online gambling opportunities to players over the Internet.
The Commission has also granted gambling licenses to three land-based poker rooms that happen to be located inside Kahnawake.
The Kahnawake Gaming Commission has three members, each member working through a two-year term. The members are appointed by the Mohawk Council of Kahnawake, which is the body that governs the Commission.
Types of Licenses
Currently, the Kahnawake Gaming Commission issues four different types of licenses. All these licenses are issued as per the Regulations for Interactive Gaming that the Commission laid down in July 1999 which were subsequently amended. The most recent amendment was on June 2, 2010.
The Four Different Types of Licenses That the Kahnawake Gaming Commission Grants are:
- Client Provider Authorization (CPA) – Issued to an entity that wishes to provide online gaming from an approved Kahnawake hosting facility. The holder of the license may offer any type of gaming they desire, including casino, sportsbook, and poker.
- Key Person License (KPL) – This option is issued to someone who performs managerial or operational functions for a company that already holds a Client Provider Authorization license.
- Interactive Gaming License (IGC) – Only one of these licenses may be issued at any time, and it must be awarded to an approved hosting facility located in the domain of the Kahnawake. Since the KGC started operations in 1999, the license has been held by Mohawk Internet Technologies.
- Inter-jurisdictional Authorization – This option is intended for any entity that already holds a license in another gaming jurisdiction. Once approval has been obtained, the recipient can locate personnel or equipment to the Mohawk Territory of Kahnawake. The original licensing jurisdiction, however, is still responsible for monitoring the company.
The application process
Obtaining an online gambling license from Kahnawake can take between 4 and 8 weeks as long as all documents are in order. If the Commission rejects the application for any reason, you will be reimbursed $ 10,000. All other fees, including professional service fees, are non-refundable.
The first step in the process is to apply for Client Provider Authorization (CPA). This includes the requirement that some documents be produced, including the application form. In addition, a license information form and a personal information form must be completed. It must be completed and submitted by each shareholder who owns at least 10% of the business and by each person who will submit a license application form for the key person. If the applicant company is listed on the stock exchange, information on each director must be provided, including an updated CV and annual reports for the last three years. To apply for a license with the Kahnawake Gaming Commission, the applicant has to pay an initial fee to the Commission. This fee is $ 25,000 for a CPA license.
In order to obtain a license for Client Provider Authorization, an applicant must provide the following information:
- Business entity information form.
- Personal information form (to be completed by any person with 10% or more interest in the company).
- Application for client provider.
- A letter from Mohawk Internet Technologies stating their willingness to host the operations of the applicant.
- Control system submission.
- Key person license application form.
The second step in the licensing process is to ensure compliance with ethical considerations. These include fair play policies, transparency, and ensuring that the entity is not affiliated in any way with crime or delinquency. The operator must also ensure that it does not provide or permit access to vulnerable categories of users and that it has taken steps to ensure the security and confidentiality of data and the user.
After sending the application and the necessary documents to the Kahnawake Games Commission, it will issue a decision within 4 to 8 weeks. The first license will be issued for six months, during which time the entity will be reviewed and continuously tested.
After 12 months, the Kahnawake Gaming Commission will conduct a final review of the application and decide whether to issue a second license.
To ensure that the license application process is completed in a minimum of time, it is advisable to hire a corporate service provider such as Szilaghi Consulting. Knowing the depth of the process and familiarity with the Commission means that the application can be made faster and easier than if you do it yourself.
You can read more about these license types at the official site of the Kahnawake Gaming Commission. Another type of license that the Commission issues is a Poker Room License (PRL).
This type of license is issued to poker rooms operating within the Mohawk Territory of Kahnawake, as per the Commission’s Regulations concerning Poker Rooms, which was amended as recently as April 21, 2010.
The Kahnawake Gaming Commission and Other Regulatory Bodies
The Kahnawake Gaming Commission doesn’t work in isolation. Over the years, it has been working together with other regulatory bodies as well to make online gambling smoother and easier for players.
The Commission has been cooperating with the Financial Services Regulatory Commission of Antigua and Barbuda since 2004 when it entered into an agreement with this body through a memorandum of understanding.
The Kahnawake Gaming Commission also has a similar arrangement with the Lotteries and Gaming Authority of the Government of Malta through another such memorandum of understanding the two parties who entered in 2006.
Canadian Gambling Legislation in 2021
It is illegal to operate an online casino in Canada without a license, however, it is perfectly safe and legal for Canadians to play at any offshore casino.
It is estimated that by 2023 global revenues from the gambling industry will reach 525 billion US dollars. Online gambling and betting account for a significant portion of this revenue with a market estimate of $ 66.72 billion in 2020. Canadians have shown an incredible appetite for online gambling, despite regulatory hurdles for private companies looking to enter the online gaming industry in Canada. That leaves Canadians with limited options: provincial gambling, gray markets, or offshore sites. Together, these figures suggest attractive opportunities for online gambling in Canada.
Contact Szilaghi Consulting to Get Your Kahnawake Gambling License
For more than 17 years, Szilaghi Consulting has been working with startups, entrepreneurs, and companies already established for online gambling. We have worked all over the world, but we have a special and extensive practice in Kahnawake, Canada. During this time, we gained a deep knowledge of the requirements and general obligations of the process of incorporating the company and obtaining a license for gambling in Kahnawake. We have established relationships with industry stakeholders, including authorities, service providers, and other gaming companies. This positions us as market leaders in assisting our customers with Kahnawake licensing goals.
Through our extensive and carefully verified network of contacts in the country, we can ensure that you move efficiently through the entire setup process. We know everything you need to know about requirements, criteria, nuances, and possible obstacles and can help you prevent and navigate whatever comes your way.
To incorporate the company and apply for a gambling license in Kahnawake or just to discuss your plan, vision or options, contact Szilaghi Consulting today.