Kahnawake Gaming Commission

What Exactly is the Kahnawake Gaming License?

Let's start with the basics.

The Kahnawake Mohawk Territory, a First Nations reserve in Quebec, Canada, was one of the world's first jurisdictions to recognize the potential of online gaming. Instead of leaving it unregulated, they established the Kahnawake Gaming Commission to oversee and license the burgeoning market. It's the official watchdog for iGaming in the region.

The Commission introduced its first online gambling laws on July 8, 1999. This means they've been regulating online gaming longer than many other jurisdictions. Their primary goal? To ensure casino operators conduct gambling activities responsibly, fairly, and legally through robust regulations.

The Kahnawake Gaming Commission doesn't just approve licenses; they actively monitor licensees to ensure all gambling activities comply with the law. Criminal and fraudulent operations are strictly prohibited, and non-compliance is taken very seriously. Violating the rules can lead to license suspension or a complete shutdown if responsible and fair gaming practices aren't maintained.

But don't let that deter you. If your gambling business demonstrates compliance, ethical practices, and transparency, holding a Kahnawake gaming license offers significant advantages. Players perceive online casinos with well-respected licenses more favourably, boosting trust and loyalty. Licensed online casinos in Canada can also look forward to partnerships with some of the industry's most sought-after game developers and payment providers.

Kahnawake Online Gaming License Options for Canadian Operators

For operators considering where to launch their online casino, Kahnawake is an excellent choice, especially for startups in Canada. Here are the types of licenses and permits offered by the Commission:

Interactive Gaming License (IGL)

Holding an IGL allows a business to operate a co-location facility that provides internet services to Authorized Client Providers. Since 1999, Mohawk Internet Technologies (MIT) has held the sole IGL issued by the Commission.

Client Provider Authorization (CPA)

This is the standard Kahnawake license for an iGaming business looking to be based in the jurisdiction. A CPA license holder, known as an Authorized Client Provider (ACP), can run their online gaming site from the co-location facility or other MIT-controlled premises within the Mohawk Territory.

Casino Software Provider Authorization (CSPA)

The CSPA allows holders to operate their iGaming equipment at the co-location facility via the IGL holder. It also permits them to provide their online gaming software to third-party operators. Critically, CSPA holders are not permitted to offer their online casino games directly to customers; they are strictly limited to acting as an online casino software provider.

Live Dealer Studio Authorization (LDSA)

The LDSA authorizes licensees to operate a Live Dealer Studio and administer live dealer games from premises within Kahnawake.

Inter-Jurisdictional Authorizations (IJA)

This license is for gambling businesses that already hold an IGL in another jurisdiction but wish to relocate some or all of their equipment and/or staff to Kahnawake.

Key Person Permits

Key Person Permits are issued to key staff members employed by an IGL or CPA holder, for those in managerial roles or performing critical operational functions. CPA license holders must designate at least one key person to act on behalf of the ACP.

Popular Online Casinos with a Kahnawake Gambling License in Canada

To date, the Kahnawake Gaming Commission has licensed around 250 online gambling sites and sportsbooks. Here are a few top-rated, reputable casinos operating under their license in Canada:

• Tonybet
• Brazino777
• Everygame (formerly Intertops)

How to Apply for a Gambling License with the Kahnawake Gaming Commission in Canada

While the application process isn't the quickest, it's one of the more straightforward online gambling licenses to obtain. Here's a quick overview of the steps an applicant must take to secure a Kahnawake gaming license:

• Appoint your Key Person(s)
• Gather and complete all the required paperwork
• Submit your completed application
• Pay application fees
• Wait roughly four to eight weeks for the outcome
• Launch your online gaming site
• Once the application has been submitted, there are three potential outcomes for the prospective business:
• Gambling license is approved (for six months)
• Gambling license is declined
• License authorization is put on hold due to incomplete or insufficient information
• Once approved, an applicant will be issued a gambling license for six months only. Think of it as a probationary period.

The Commission will then review the operator’s performance and compliance with regulations, and consider whether they’re satisfied with how the business is being run. The regulatory body will investigate the number of complaints submitted by players and other third parties during the six-month stint and confirm if any illicit gambling activities took place, etc. They will check for anything adverse that may taint or damage the credibility of the Commission and the Kahnawake jurisdiction.

Finally, based on the six-month evaluation, the Commission will either renew the license for five years, cancel it, or extend the term of the CPA for three more months.

How Do the Commission’s Regulations Work?

The Kahnawake Gaming Commission approves a gambling license and regulates the compliance of an online casino that is designed for Canadians.

Applicants are thoroughly scrutinised with grueling background investigations and even if they pass, the permanent 5-year CPA license is not granted from the get-go. During the initial six-month probationary period, operators have to prove their legitimacy and transparency.

These are some of the regulatory benchmarks that need to be met and upheld:

• Supports responsible gaming
• Protects minors and the vulnerable
• Offers a fair and honest gambling environment
• Ensures players receive their correct winning payouts
• Prevents gambling-related crimes and money laundering

Requirements to Obtain a Kahnawake Gaming License

Now, onto the nitty-gritty.

When it comes to the license application process, authorities need to establish the identity of the owners and associates, where funds are coming from, and whether the operator is competent and transparent enough. To qualify for a gambling license in Kahnawake, applicants and their affiliates need to submit the following documents:

• Certificate of no criminal record
• Certified copies of passports, not older than three months
• Birth certificates
• Original bank references of the owner(s), not older than three months
• Personal Financial Statements
• Utility bills, not older than three months
• Detailed description of the applicant’s game offering and software
• Confirmation of the Random Number Generator application, along with proof of its validity and fairness

Applicants must also provide:

• Evidence that the software used is of impeccable standard
• Confirmation that auditing will be undertaken by independent auditors
• Testimony of a safety or emergency fund that ensures large payouts can be made to players who win big
• Details regarding their technical support and confirmation that it will be available to players 24/7
• Instructions on the rules of the live games offered must be translated into a minimum of three languages.
• Pay application fee: $35,000
• Annual license renewal fee: $20, 000
• Pay Key Person Permit application fee: $5,000
• Annual Key Person Permit fee: $1,000

Pros and Cons of Obtaining a Kahnawake Gambling License

PROS:

• Trustworthy and Safe: It’s a well-respected, reputable jurisdiction, so you can be assured that its licensed operators are legitimate, trustworthy, safe, and secure.
• Relatively Quick: While it takes six months to obtain the permanent five-year license, it’s relatively quick to acquire the initial preliminary approval. The application process takes roughly two to three weeks, and if all is in order, it takes about eight weeks for approval.
• Simple and straightforward: The application process is straightforward.
• Cost-Effective with Zero Tax: Kahnawake is great for startups or smaller casino businesses because it is cost-effective and with the CPA license, operators can look forward to a 0% gaming tax.

CONS:

• Long Waiting Period: The six-month probationary period after successfully applying is long, and it's followed by more rounds of checks that may include further background investigations — this could be detrimental to the business if any of the owners or associates were linked to unsavoury practices in the past.
• Not Widely Known: Despite being a reputable jurisdiction, the Kahnawake gaming license is not as prestigious in other regions, so if operators want to target outside audiences, they may have to graft harder to gain players' trust and recognition.

Domestic Laws and Restrictions

Holders of a CPA license in the Kahnawake region benefit from a far-reaching audience. It's essentially universal, barring the United States of America and FATF-blacklisted countries.

While the Kahnawake license covers all legal gambling markets (except the ones mentioned above), a separate local license or special permission may be needed to target players outside of the Mohawk Territory. Also, it is expected that operators will abide by their chosen market’s regulations, which include being compliant with advertising legislation.

Take note: Certain payment method providers may restrict or block funds from other jurisdictions.

History of the Kahnawake Gaming License

The Kahnawake Gaming Law was first implemented on June 10, 1996, and the Kahnawake Gaming Commission, the region’s regulatory authority, has been overseeing the compliance and licensing of prospective online casino operators since 1999.

The Commission passed its Regulations Concerning Interactive Gaming which states that operators wanting to be licensed must host their iGaming portal at MIT, which is the sole carrier of an IGL in their jurisdiction.

The authority holds a lot of pride in its reputation and wide reach. It employs several agencies to assist in its mission to ensure licensees are conducting activities that are lawful, honest, and by regulations.

Furthermore, since all licensed operators are required to be hosted by MIT, the Commission essentially has full power to ban and shut down any gambling platform that does not cooperate.