The Kahnawake gambling license is widely regarded as one of the most reputable licensing jurisdictions among operators due to its widely-respected regulatory authority and zero-percent taxes. This article is here to guide you through the maze of bureaucracy and the lists of documents required to apply and obtain the online gaming license in Kahnawake.
Online gambling licensing and regulation in Kahnawake
The Kahnawake Gaming Commission (KGC) is a regulatory body located in the Mohawk territory of Kahnawake, Canada. It is responsible for regulating and licensing online gaming operators who wish to offer their services to players from around the world. The KGC was established in 1996 and is one of the first online gaming regulators. It is widely recognized as a trusted and reputable regulator in the online gaming industry. The KGC sets standards for security, fairness, and responsibility in online gaming, and works to protect players and ensure that gaming operators abide by these standards. To obtain a license from the KGC, operators must meet a range of requirements and pass a thorough background check and technical assessment. The KGC continues to monitor licensed operators and has the power to revoke licenses if operators fail to comply with its standards.
Contact Us to Start Your Gaming Company Today
Szilaghi Consulting has worked in the gaming business for over 19 years. Contact us today to find out how we can assist you with the incorporation of your gaming company, right through the business, fiscal, and licensing matters.
Types of gaming license in Kahnawake 2023
The Kahnawake Gaming Commission can issue one of the following kinds of licenses and permits:
- Interactive Gaming License (IGL). The commission has issued only one interactive gaming license: Since 1999, Mohawk Internet Technologies (MIT) has held the sole IGL license. This license allows the licensee to operate a co-location facility to provide Internet services to Authorized Providers.
- Client Provider Authorization (CPA). This is the license that a regular iGaming operator requests if he wants to activate with the Kahnawake license. It allows the holder to run interactive games from the co-location unit owned and operated by the IGL holder, as well as from other premises located in the Territory. The holder of a CPA license is known as an Authorized Client Provider (ACP).
- Casino Software Provider Authorization (CSPA). The holder of a CSPA license does not have the right to offer interactive games directly to players. The CSPA license allows the holder to co-locate and operate interactive gaming equipment at the co-location facility owned and operated by the IGL holder, as well as to provide casino software to the operators.
- Live Dealer Studio Authorization (LDSA). This license allows the holder to operate a Live Dealer Studio, offer live dealer games and other interactive gaming activities from premises located within the Territory.
- Inter-Jurisdictional Authorizations (IJA). This license is issued to a company that holds an IGL license in another jurisdiction but wishes to locate some or all of its equipment and/or personnel on Mohawk territory in Kahnawake.
- Key Person Permits. These key persons may be employees of IGL or CPA and may perform one of the following functions: key managerial or key operational functions.
All CPA Licensed Operators must designate at least one Key Person to perform key managerial functions for or on behalf of the Authorized Client Provider. Thus, a typical iGaming operator should obtain at least a Key Persons Permit in addition to the CPA license.
Benefits of getting a gambling license in Kahnawake in 2023?
The jurisdiction offers many licensing options to choose from, and obtaining a gambling license in Kahnawake has several and undeniable benefits. The holder can legally operate an online gambling business and enjoys cooperation with the most popular game developers and payment system providers in the industry.
The validity of the CPA license is valid for 5 years and covers all markets except the USA. However, operators should consider compliance with the laws and requirements of the target countries, including advertising regulations.
- Cost: Relatively low licensing fees
- Tax Free: 0% corporate tax rate, no additional gambling tax
- Reasonable: flexible requirements
- Reputation: is accepted by players and payment service providers
- Universal: Covers all markets except the US
- Responsible: Promotes fair and responsible gaming
Taxes and Fees of getting a gambling license cost in Kahnawake
The cost of acquiring a gaming license in Kahnawake is relatively low compared to other jurisdictions.
|Application fee (includes cost of conducting due diligence checks and the first annual licensing fee):||$35,000|
|Costs associated with the Commission’s assessment of the applicant’s Control System Submission||Cost to be presented by the Commission with the appropriate invoice|
|Key Person License application fee||$5,000 (each)|
|Annual licensing fees||$20,000|
|Annual Key Person permit fee||$1,000|
|CPA renewal cost||$5,000|
|Key Person Permit renewal cost||$2,500|
From a taxation point of view, Kahnawake is the ideal and most attractive jurisdiction to license a long-term online gambling business. The profit tax is 0% and there is no other additional tax for gambling.
Procedure of getting a Kahnawake gaming license
The process of obtaining a Kahnawake gambling license takes a little longer than in other gambling jurisdictions. The steps to obtaining a Kahnawake license are:
- Appoint a key person
- Gather the necessary documents
- Submit your application and pay the application fee
- Waiting period of four to eight weeks
- Launch your online casino
Once the application is submitted, the operator has three possible outcomes: the Commission will accept the application and issue the license, reject the application or return the application to the operator and ask him to complete it with additional information.
When the documents are approved and the application is accepted, the license is issued for six months. Thereafter, within thirty days before the expiration of the initial six-month period, the Gaming Commission will review the operator’s performance and consider whether the operator has implemented the compliance program. The KGC will also investigate the existence of complaints from players or other third parties and whether the operator has violated any law, regulation or committed acts that have adversely affected the credibility or reputation of the Commission.
After that assessment, the Commission decides whether to renew the license for a period of five years, to refuse to renew the license or to extend the authorization period of the customer supplier by another three months.
The application process for obtaining a gambling license in Kahnawake takes between four and eight weeks.
Once the application is received by the KGC, it is assigned to the compliance officer, who checks whether the application fee has been paid and then reviews all the documentation.
Documents required to obtain Kahnawake gambling license in 2023
To obtain a gambling license in Kahnawake, operators must establish their credibility and prepare all the necessary documents. Although the list may seem long, this should not scare off a potential license holder.
The list of documents required to obtain a CPA gambling license is as follows:
- Client Provider Authorization (CPA) license application
- Business Entity Information Form
- Personal Information Form to must be filled by each of the following individuals:
- Each director
- Each shareholder with minimum ten percent (10%) ownership
- Each person who submits a Key Person License Application Form
- Control System Submission
- A letter from the holder of a valid Interactive Gaming License, indicating that it is aware of and consents to having the Applicant’s Secondary Client Provider Authorization, if it is granted, appended to the Interactive Gaming License
- A list of all directors, with a CV or RESUME for each director
- Annual reports prepared by the corporation for the past three years.
The operator is required to obtain a key person permit when applying for a gambling license in Kahnawake. For this permit, the operator will produce the following documents:
- Key Person License Application Form. This form must be completed by each of the applicant’s key persons. Each license applicant shall nominate at least one person who exercises a key managerial function.
- Personal information for each of the proposed key persons.
- A letter from the proposed licensee or authorized customer supplier to the Commission confirming the existence of the key relationship, the type of key function that the proposed person will perform and a detailed description of the duties and functions that the proposed person will perform, as well as the type of training she has received that would qualify her to perform the proposed key person function.
In addition to the documents mentioned above, the Kahnawake Gaming Commission also requires the following basic documents from each authorized person, officer, director, shareholder, beneficial owner and ultimate beneficiary:
- Criminal record certificate for the owners of the company
- Legalized copy of passports
- Birth certificate
- Bank references of the owners
- Personal financial statements
- Certified copies of utility bills
- Description and details of the games offered and the software used
Szilaghi Consulting offers consulting services and complete package solutions for the purchase of the gambling license, which include:
- Jurisdiction of gambling and business consulting
- Incorporating the corporate structure of the gambling business
- Opening bank accounts
- Application for a gambling license
Disadvantages of Kahnawake gambling license
The 6-month waiting period for final approval of the Kahnawake gambling license can seem daunting. Most operators do not feel safe during this waiting period, because they know that there is a possibility, that they will not get the full license. However, Kahnawake is no different from other jurisdictions, as they too can suspend licenses at any time if operators fail to meet compliance requirements or violate other policies. However, if the operator conducts its gambling activity responsibly, it has nothing to worry about in any jurisdiction.
Why is a license needed?
Obtaining an online gambling license gives credibility to the casino and helps operators run their business more efficiently.
- Business operations. The gambling license is required to establish and register a gambling company, open bank accounts and operate.
- Player acquisition. A valid license gives the company credibility in the eyes of players. Experienced players prefer to deposit in casinos that have a gambling license, because they feel safe in case of problems with withdrawals or other operations. Beginner players also choose licensed platforms because they are new to online gambling and prefer a casino that seems more trustworthy.
- Security. Obtaining a gambling license protects the operator from possible legal problems. Operating without a license leads to heavy fines or jail time.
- Partnerships. B2B solution providers are willing to cooperate with licensed operators. This offers several advantages, such as: assistance with game content and transaction difficulties, which are not guaranteed for unlicensed operators, as well as the opportunity to cooperate with internationally recognized brands.
Kahnawake Gaming License FAQs
How much does it cost to get a Kahnawake gambling license?
The total cost to purchase the Kahnawake Gaming License is a minimum of $61,000, which does not include the costs associated with the Commission’s evaluation of the applicant’s control system submission.
What is the licensing process?
The applicant must appoint a key person, collect the necessary documents, submit the application together with the application fee and wait for the license to be issued.
How long does it take?
From initial application to final approval, the process takes approximately four to eight weeks.
Why Should I Choose Kahnawake Gaming License?
The Kahnawake Gaming Commission has established itself as a trusted regulatory body that promotes fair and responsible gambling. The jurisdiction has a 0% corporate tax rate, no other additional tax on gambling and sets a relatively low license cost.
What kind of license do I need?
Any online gambling startup, must apply for a Customer Provider Authorization (CPA) and at least a Key Person Permit (KPP). The CPA allows you to run interactive online games from Kahnawake, and key person passes are granted to those who are responsible for operational and managerial functions for the entity that holds the CPA.
Why do I need a license?
An online gambling license in Kahnawake establishes the credibility and good reputation of a casino project. Operating without a license makes it difficult to cooperate with game developers and payment system providers and exposes you to the possibility of fines and imprisonment.
How can Szilaghi Consulting help you start your online gambling business?
Choosing a gambling licensing jurisdiction is quite difficult, to begin with. Given the sheer number of factors that need to be considered by gambling operators, the choice can be overwhelming.
Szilaghi Consulting has been providing services to the online and offline gambling industry for over 19 years. We have helped our clients to make the right choices, to realize their visions, to overcome obstacles, and, above all, to succeed. We offer transparency and efficiency and we are committed to always acting only in your interest.
Our experience in obtaining online and offline gambling licenses differentiates us from the competition. We cover all your needs, from the incorporation of the gambling company, the creation of fiscal and compliance structures, to obtaining the gambling license.
Our experts invite you to schedule a consultation with us. We like to communicate with our customers, troubleshoot their problems, and offer solutions. Szilaghi Consulting invite you to contact with one of our consultant today and discuss your needs. Let us help you take your business to the next level.