Kahnawake is a jurisdiction that is very popular among online casino operators. This territory is very attractive for gambling due to a responsible regulatory body, a favorable investment climate and the complete absence of taxes for gambling. But getting a Kahnawake gambling license is not easy. Potential licensees expect a lot of bureaucratic tests and long collection of necessary documents. This article discusses all the features of the Kahnawake gambling license.
Legislative regulation of gambling activities
Kahnawake is a small town that is located on the territory of the city of Quebec in Canada. It was here that the online gambling industry began to develop at a particularly rapid pace, compared to other jurisdictions. Local authorities consider the gambling business as an endless source of replenishment of the state budget, therefore, a lot of laws and regulations are being developed to regulate this industry.
Regulation of gambling activities in the territory of this jurisdiction is carried out on the basis of the provisions of the Kahnawake Gambling Commission. This regulatory body was established back in 1999, and since then has been continuously involved in the registration and issuance of gambling licenses to operators of gambling establishments. The main function of the Kahnawake Gaming Commission is the strict observance of the provisions of responsible and fair gaming. All gambling activities must be carried out within the framework of the current laws of the jurisdiction of Kahnawake.
Benefits of Obtaining a Kahnawake Gambling License
Every year more and more online casino operators prefer the jurisdiction of Kahnawake for their gambling business. And this is not surprising. This jurisdiction has many undeniable and significant advantages.
Kahnawake Gambling Commission license holders have the opportunity to cooperate with the best software providers and the most popular payment systems. This creates very favorable conditions for the gambling business. The Kahnawake Gambling Commission is a prestigious regulatory body, so having such a license inspires confidence and a sense of security among players around the world.
Automatically, an online casino that holds such an influential license looks prestigious and reliable in the eyes of users. Having such a license is an effective tool to attract new players from all over the world.
The Kahnawake Gambling Commission gambling license is valid for 5 years. Holders of this license may legally operate in all jurisdictions except the United States. But, of course, at the same time, it is necessary to adhere to the provisions of the current legislation of the country in whose territory gambling activities are carried out.
It is also worth noting other strengths of the Kahnawake Gambling License:
- Relatively low cost of obtaining a permit, as well as moderate license fees;
- No need to pay corporate tax, as well as tax on gambling activities;
- Fairly simple conditions for obtaining a license;
- Possibility of cooperation with all popular payment systems;
- Opportunity to operate in all markets other than the US;
- Supporting the principles of responsible and fair gaming;
- Trust and loyalty of players around the world.
License types
Today, the Kahnawake Gambling Commission offers several types of available licenses to online casino operators. Let’s take a closer look at each of them:
- Interactive Gaming License (IGL). Currently, the holder of this type of license is only one company in the world – Mohawk Internet Technologies. She received her license in 1999. The presence of such a license allows you to manage the data center and provide services to holders of a CPA type license;
- Client Provider Authorizations (CPAs). Holders of this master license may legally organize gambling entertainment using the servers of Interactive Gaming License holders. Operators with a CPA license are so-called authorized customer providers. This type of license is the most requested and popular in the Kahnawake Gambling Commission;
- Casino Software Provider Authorizations (CSPA). Holders of this type of license have the right to host servers in the data center of the owner of the Interactive Gaming License. In addition, such companies are able to supply software for gambling establishments. Also, thanks to the presence of such a license, it is possible to directly offer gambling entertainment to players;
- Live Dealer Studio Authorizations (LDSA). This type of license is required for companies that organize games with live dealers, as well as live broadcasts of such games;
- Inter-Jurisdictional Authorizations (IJA). Applicants for an IJA-type license are operators who have a basic license similar to IGL, but issued by a different regulatory body. If such an operator wants to engage in gambling activities in the Kahnawake jurisdiction, they will need an Inter-Jurisdictional Authorizations license
- Key Person Permits. This work permit is issued to key persons who act as intermediaries between licensees such as IGL and CPA. The holders of this permit perform managerial and operational tasks.
All CPA license holders must have at least one key person on their staff who will conduct management activities on their behalf. Therefore, in addition to the CPA license, you must also obtain a Key Person Permit.
In Kahnawake jurisdiction, gambling refers to all types of games that have mixed odds of winning. In such entertainment, players must show special skills and abilities. The following types of gambling are legalized in the jurisdiction of Kahnawake:
- bingo;
- card games;
- roulette;
- keno;
- slot machines;
- betting on horse racing;
- betting on dog racing or racing other animals;
Licenses for interactive gambling entertainment are issued for a period of 5 years. Require annual user fees.
License cost
Compared to the cost of obtaining a gambling license in the territories of other jurisdictions, the price of a Kahnawake license is quite affordable. Operators who wish to obtain a Kahnawake Gambling Commission license must be prepared to pay the following items:
- License fee and first annual fee – $35,000;
- Payment for the software system evaluation procedure – $5000;
- Registration of Key Person Permit – $20,000;
- Annual renewal of a key person’s work permit – $1000;
- Annual license renewal – $5000.
Considering the issue of taxes, it can be concluded that the jurisdiction of Kahnawake is an ideal place to run a gambling business. Kahnawake Gambling Commission license holders are exempt from corporate tax. They are also not required to pay gambling tax. All this creates favorable conditions for the popularization and rapid development of the gambling industry.
Licensing procedure
Compared to other government agencies that regulate the gambling industry, obtaining a license from the Kahnawake Gambling Commission is quite simple. It does not take a lot of time. To obtain a license, you must adhere to the following algorithm of actions:
- Obtaining permission for a key person;
- Preparation of a package of required documents;
- Filling out and submitting an application for consideration by the commission;
- Payment of the registration fee;
- Waiting for a decision from the Kahnawake Gambling Commission.
After reviewing the application, studying the submitted documents and technical verification of all systems and software of the online casino, the Commission may make the following decisions:
- Approval of the application and issuance of a license;
- Returning the application to the operator for revision;
- Rejection of the application.
After all the documents are checked and the answer to the submitted application is satisfactory, the operator will receive his permission to conduct gambling activities. But it should be borne in mind that the first license is issued only for half a year. At least one month before the expiration of this period, the Kahnawake Gambling Commission will re-inspect and evaluate the activities of the operator. After that, a decision will be made to extend or revoke the issued license.
When conducting a re-inspection of the activities of an online casino, representatives of the commission will evaluate the following aspects of the operator’s work:
- The presence of violations of the provisions of the Kahnawake Gambling Commission or the laws of the jurisdiction of Kahnawake;
- Compliance with all regulatory legal acts;
- Complaints from customers or third parties;
- Honesty and clarity of financial transactions;
- Software quality.
Based on all the issues considered, the Commission will make a decision: to renew the license for a five-year period, to stop the license or to extend its term for another three months for re-examination.
Required documents
In order for the procedure for obtaining a license to pass as quickly and smoothly as possible, the issue of preparing the necessary documents must be treated with all responsibility and seriousness.
At first glance, it may seem that the commission requires too many extra documents, but they all belong to the standard set. Collect this list of documents by everyone within the shortest possible time. Such a responsible approach will help save time for both the potential licensee and the members of the Commission, since the application will not have to be sent for revision.
The following documents are required to obtain a gambling license::
- Notarized copies of the passports of the director of the company and all shareholders;
- Bank statements of company owners;
- Certificates of non-conviction of the entire management team of the company;
- Personal financial statements for the director of the company and all shareholders;
- A detailed description of all the games presented on the platform, as well as the technical characteristics of the software;
- Completed application for a license;
- Detailed information about the legal entity;
- Detailed description of the gambling platform control system;
- An official letter from the license holder IGL (Mohawk Internet Technologies), in which the company confirms its awareness of the receipt of a new license, and also gives its consent to the addition of a new licensee;
- A detailed summary of all members of the board of directors;
- Annual financial statements for the last 3 years.
Disadvantages of the Kahnawake License
Many online casino operators do not take the risk of obtaining a Kahnawake Gambling Commission license due to the long period of waiting for the final decision from the regulatory body. The term for consideration of the application by the members of the Commission may last up to 6 months.
There is always a possibility that the application will be rejected. Because of this, some operators do not want to take risks and waste their time, but prefer a license with an accelerated registration procedure. But it is worth remembering that absolutely any jurisdiction can make a negative decision on the issue of issuing a license. So it can hardly be called a significant drawback.
Summing up
Kahnawake is a jurisdiction that is territorially located in Canada. This residence is very popular among online casino operators, as the most favorable conditions for gambling business have been created here. Having studied the statistics, we can conclude that almost all potential licensees received a positive response from the Kahnawake Gambling Commission. Holders of this license can boast of high-class technical equipment and security of financial transactions. On this page, you will be able to find online casinos that have received Kahnawake Gambling Commission license and enjoy a safe and fun gaming experience.
