KAHNAWAKE
Online Gambling License
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Kahnawake Online Gambling License
Kahnawake Online Gambling License 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.
The Kahnawake Mohawk Territory is a First Nations Reserve in Quebec, Canada that offers its online gambling licensing to international operators. Since 1999 it has grown to become one of the biggest registries in the industry. The jurisdiction licenses more than 250 big names including online casino, poker, live games, eSports, lotto, sports betting and more. With high standards in compliance and ethical gambling, Kahnawake is a highly respected jurisdiction.
Holding a Kahnawake gambling license implies responsible and fair gaming practices and that the entity is not fraudulent. Anyone holding a license from Kahnawake has vote of confidence in terms of the legitimacy of their operations. The Kahnawake Gaming Commission is constantly monitoring and supervising their licensees. This translates into higher-level of player protection and increases business partners confidence. Allows a wider portfolio for payment methods and access to more markets.
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The license from Kahnawake Gaming Commission provides operators with 0% gaming tax. Thus, the company will reinvest a large part of the profit. Combined with an efficient and relatively low-cost application and setup process makes it an enticing jurisdiction for many iGaming companies.
The Kahnawake Gaming Commission is a regulatory body that provides licenses and regulates online gambling activities from the Mohawk Territory. Established in 1996, the commission is one of the most respected online gaming regulators in the industry.
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. They 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 to recognize the potential of the industry.
Subsequently, it became one of the earliest gambling jurisdictions and is home to the Kahnawake Gaming Commission. Basically, the Commission provides gaming licenses to online casinos, poker rooms, sportsbooks, and other online gambling outfits.
To obtain the online gambling license, the applicant will adhere to the Commission stringent provisions.
Kahnawake Gambling License Benefits
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. 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 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 paperwork required to obtain an online gambling license in Kahnawake is much less compared to other jurisdictions. Compared to Curacao, there are more tasks to complete, such as questionnaires and supporting documents to be provided. Moreover, if you hire Szilaghi Consulting to help you with the process, you can further reduce stress.
- Credibility for players. The jurisdiction of Kahnawake is trustworthy and the Gaming Commission is respectable. Holding a Kahnawake gaming license implies responsible and fair gaming practices and that the entity is not fraudulent. In order to increase players’ loyalty and trust in gambling platforms, the commission supervises and monitors licensees. The Gambling Commission reviews all user complaints and suspends all the companies that break the rules. 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. Reinvesting the profit in the business 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, Kahnawake 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 a regulatory body that grants online gambling licenses to online gambling organizations.
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. Mohawk Council of Kahnawake appoints the members.
Kahnawake Types of Licenses
Currently, the Kahnawake Gaming Commission issues four different types of licenses. The license is issued as per the Regulations for Interactive Gaming that the Commission laid down in July 1999. 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 license is for individuals who hold key positions within an online gaming company, such as executives, directors, and management personnel.
- Interactive Gaming License (IGC) – The commission only grants such a license to an approved hosting facility located in the Kahnawake domain. Since 1999, Mohawk Internet Technologies has held this license.
- Inter-jurisdictional Authorization – This license is requested by a Company that holds a gambling license in another jurisdiction. Once obtained, the licensee may locate personnel or equipment on Mohawk territory in Kahnawake. The original licensing jurisdiction, however, is still responsible for monitoring the company.
It’s important to note that the requirements for each type of license may vary, and operators should carefully review the application process and regulatory requirements for each license type before applying. Additionally, operators are required to hold multiple licenses depending on the specific services they offer and the jurisdictions they operate in.
The application process
To obtain a Kahnawake gambling license, operators must meet several requirements and comply with strict regulations set out by the Kahnawake Gaming Commission. These are the key conditions:
- Fit and proper person test – Applicants must undergo a fit and proper person test, which includes a background check and evaluation of their financial stability, integrity, and business experience.
- Business plan – Applicants must submit a comprehensive business plan, outlining their proposed operations, financial projections, and marketing strategy.
- Technical requirements – Operators must meet specific technical requirements related to their online gaming platform, such as data protection, game fairness, and player security.
- Compliance requirements – Operators must comply with strict anti-money laundering and anti-fraud regulations, and implement responsible gaming measures.
- Financial requirements – Applicants must have adequate financial resources to support their operations. Including maintaining a minimum amount of capital and providing financial guarantees.
- License fees – Operators must pay a license application fee, an annual renewal fees and a percentage of their gross revenue.
The Kahnawake Gaming Commission has strict enforcement powers and regularly conducts audits and inspections to ensure compliance with their regulations. Non-compliance can result in fines, license revocation, and even criminal prosecution. Therefore, it’s important that operators fully understand and comply with all the conditions of the license.
Cost of Kahnawake Gambling License
The cost of obtaining a Kahnawake gambling license varies depending on the type of license and the operator. Generally, the license application fee is around $25,000 USD, which is payable upon submission of the application. In addition to the application fee, operators are required to pay an annual license fee, which ranges from $10,000 to $50,000 USD.
License holders are also required to pay a percentage of their gross gaming revenue (GGR) to the Kahnawake Gaming Commission. The GGR fee ranges from 0.5% to 1.5%, depending on the type of license and the operator’s annual revenue.
These fees are subject to change and may vary based on the specific requirements of each individual applicant. Additionally, there may be additional costs associated with meeting the technical and compliance requirements of the license, such as software development and third-party audits.
Overall, obtaining a Kahnawake gambling license can be a significant investment for operators, and they should carefully consider the costs and benefits before applying for a license.
Obtain the CPA Gambling License
Obtaining an online gambling license from Kahnawake can take between 4 and 8 weeks. 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). The first required document is the application form. In addition, the applicant fills a license information form and a personal information. Each shareholder that owns minimum 10% of the business fills and submits these documents. Every person applying for the key person license fill and submits the same forms. The directors of a company listed on stock exchange, submits a CV and annual reports for the last 3 years. To apply for a license with the Kahnawake Gaming Commission, the applicant has to pay a 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 (filled 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. The operator must also ensure that it does not provide or permit access to vulnerable categories of users. That it has taken steps to ensure the security and confidentiality of data and the user.
After application and documents are submitted to the Kahnawake Games Commission, the decision is issued within 4 to 8 weeks. The Commission issues a first license for six months, and, in this period of time, the entity is reviewed and continuously tested.
After 12 months, the Kahnawake Gaming Commission conducts a final review 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.
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. Is perfectly safe and legal for Canadians to play at any offshore casino. We 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. 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
Since 2004, 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.