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Alyce Fabel, Head of Content at CasinoRIX

Page Last Updated: July 18, 2024, 9:36 AM

How to get a Gaming License in Kahnawake 2024

The Kahnawake territory of Quebec Canada has had quite the journey to attaining a recognized online gambling regulatory standard. From its interesting gambling history to becoming one of the most preferred license bases for gambling businesses, Kahnawake has left quite the trail. And especially for start-ups, acquiring a Kahnawake Gaming license might just be ideal owing to a couple of merits.

Moving on, here’s a holistic overview of all there is to know about getting a Kahnawake Gaming licence in 2024.

Table of Content

History of Online Gambling in Kahnawake
Why Should You Get A Gambling License in Kahnawake
Advantages & Disadvantages of Getting a License in Kahnawake
How Do You Get A Kahnawake Gaming License?
The Procedure for Obtaining Kahnawake Gambling Licenses for New Operators
Requirements to Get a Kahnawake Gaming License in 2024
Taxes, Fees, and Cost of Kahnawake Gambling License
How Long Does It Take to Get a Kahnawake Gambling License
Statistics and Facts About Kahnawake Gambling License
The Rules For Switching to New Licenses for Existing Operators
Conclusion
Kahnawake Gaming License FAQ

History of Online Gambling in Kahnawake

Being one of the first regions to recognize and harness the potential of online gambling, Kahnawake has a pretty interesting history leading up to today’s scene. Following the rise of online betting and casino platforms in 1994, Kahnawake’s jurisdiction wasted no time in incorporating online gambling platforms.

With Gambling jurisdiction as a whole being recognized and affirmed by the Canadian “Aboriginal Rights” in the Constitution Act of 1982, Kahnawake faced no legal resistance onboarding the “Kahnawake Gaming Act” in 1996, which birthed the Kahnawake Gaming Commission. Three years later, after section 35 was included, to account for interactive gaming, online gambling was fully operational, with the first casinos and betting sites beginning operations.

By the early 2000s, Kahnawake had become a hub for online gaming, owing to its early and optimal legislation. By now, the Kahnawake license had come to be sought after by operators seeking a fully legal and stable base.

Why Should You Get A Gambling License in Kahnawake

It’s 2024, and the merits of acquiring a Kahnawake gambling license are well-established. Especially for startups that require certain boosts to get up and running, registering an online gambling operator with the Jurisdiction is ideal in so many ways. Moving on, here are some factual and well-known merits of operating an online gambling enterprise with legislation from Kahnawake.

A Wide Industrial Reach

Kahnawake license holders get access to a good network of operators, game developers, payment systems, as well as other legislations. Furthermore, the Kahnawake Gaming Commission permits its licensees to target users in lots of jurisdictions, with exception of the USA. This advantage holds only if the licensed operators stick to the local regulations of the target market.

Great For Startups

As previously hinted, a Kahnawake gaming license for startups in the industry is just about right. This is primarily due to its cost-effectiveness as well as the lenient terms and conditions. Also, amidst its relatively low fees and friendly terms, Kahnawake’s licence still maintains its standards, prestige, and market appeal, necessary for all round effectiveness.

Seamless Acquisition process

Whilst still maintaining its standard, Kahnawake’s gaming license features a pretty friendly acquisition modality. Usually, applying for an online gaming license in any jurisdiction at all requires a good deal of paperwork, screening as well as interviews. And while Kahnawake’s licensees still get to undergo due process, it is not a very hectic one, compared to some other jurisdictions.

What Happens If You Operate Without a License?

Is it possible to operate casinos and other gambling businesses without a legitimate license? This has to be one of the most asked questions surrounding licensing in online gambling. And the answer remains Yes and No! It isn’t possible to operate a legal, profitable, and fully recognized gambling provider without proper licensing in 2024. So what happens if an operator offers these services without a license?

As it is with any regulated industry in the world, operating without a gambling license comes with certain undesirable outcomes. First, unlicensed gambling platforms are mostly unregistered and unrecognized by both the government and the industry at large. This makes it difficult to operate smoothly, as such operators would have little to no legal rights and privileges as well as industrial resources.

Also, operating without a license reduces the access a provider has to affiliate with payment providers, game developers, odds providers as well as other platforms of its kind. This in turn makes using the particular platform less and less desirable, which affects the very core of the gambling business.

Last update: July 18th, 2024, 09:36 am

Advantages and Disadvantages of getting a license in Kahnawake

As is typical of all gambling regulatory jurisdictions, there are upsides as well as downsides to seeking and acquiring a Kahnawake Gaming Commission license. And taking an unbiased standpoint, here’s a detailed overview of the merits and demerits of getting a Kahnawake license.

Reputation
Aside from being easily recognizable, certain advantages come with choosing a well-known gambling license like that of Kahnawake. Firstly, operators with a Kahnawake license, be it an online casino license Kahnawake or an online bookmarker, can capture and retain players’ trust fairly easily.
Also, casinos and bookmarkers with a prominent license like that of Kahnawake find it much easier to network and affiliate with payment providers, gambling software providers, etc.
Responsible Gambling
Promoting responsible gambling policies is pretty much an obligation for most online gambling jurisdictions, and Kahnawake is not left out. Under local and international gambling laws, a standard gambling license comes with stipulated policies that foster proper gambling in different regions.
As such operators who opt for a Kahnawake Gaming license can fully boast of having comprehensive responsible gambling support policies.
Zero Taxes
The absence of taxes is about the most peculiar and outstanding advantage of registering an online gambling business with Kahnawake. The jurisdiction has no additional gaming tax and exactly a 0% corporate tax rate. Judging by this regard, Kahnawake’s license is perfect for startups in the online gambling business.

Relatively Long Waiting Periods
Getting a request for the Kahnawake gambling license approved in totality can take up to six months on average for complete modalities. This period can be pretty discouraging for operators seeking immediate approval to either establish or expand their online gambling businesses.
Nevertheless, this waiting period is not peculiar to the Kahnawake Gaming Commission. Many other jurisdictions also require a pending period to assess their requirements for issuing full licenses.
Incomplete International Access
While an operating license from Kahnawake allows access to advertise and offer services in other regions, it isn’t 100% accessible in certain regions. By virtue of its location on a Native American reservation, Kahnawake’s legal gambling status is not so compatible with that of some international markets, especially America in this regard.

How to Get a Kahnawake Gaming License

How to get Kahnawake Gaming License

Going after a Kahnawake gambling license involves a detailed but straightforward process. On the operators’ end, certain modalities have to be put in place, to ensure alignment with the Kahnawake Gaming Commission’s policies. The following are some inevitable preparatory and execution steps to seeking a Kahnawake Gaming License successfully.

Structure (Get a Team)
As is customary with corporate endeavors like seeking an operating license, putting together a team is preliminary. Here an established casino/betting operator wants to ensure that it appoints staff to initiate and follow up on the application process. Meanwhile, a startup would need to inaugurate a team to oversee the acquisition of the operating license.

Collate Paperwork
After a team is put in place, drafting up the paperwork for an official bid for the Kahnawake gambling license should be the next spot of call. This is where the facilitators of the online casino or gambling platform ensure that it includes every necessary detail required by the Gaming Commission.

Waiting Period
In approximately four to eight weeks, there should be feedback from the commission. It is after this period that the operators’ stance will be confirmed. Here, one of three possible outcomes will be the case. The Commission would grant the application and have the license issued on certain terms and conditions. Secondly, the operator’s application could be outrightly denied or lastly, it could be a temporal revert, for the inclusion of additional requirements.

Furthermore and as stated previously, even when the initial application is successful, the issued license will be operational for just the first six months. Afterward, within thirty days of the expiry of the initial license, the operator’s performance will be put under an ultimate review. In essence, the review will be aimed at determining the extent to which the gambling operator has complied with the appropriate program.

In all, six months is considered the ultimate waiting period for a proper and fully operational gambling license to be issued.

Who Issues Kahnawake Sublicenses?

Who Issues Kahnawake Sublicenses

While the Kahnawake Gaming Commission is solely responsible for issuing primary licenses to its main operators, sublicenses are usually outsourced by the master license holders. In other words, an intermediary entity or main operator has the liberty to issue sublicenses to other operators who seek to offer gambling services under the regulations of the KGC.

To further highlight the dynamics between a Kahnawake master license and a sublicense, we turn to a co-operate example, “Franchising”. Here the Franchisor grants a franchisee the rights to operate a business model, using its systems, brand, and licences. The same can be said for a Kahnawake primary license holder, who reserves the rights to sublicense operators under Kahnawake’s jurisdiction.

Types of Kahnawake Gambling Licenses

There’s more than one kind of gambling license that is obtainable from the Kahnawake Gaming Commission. And depending on the full nature of gambling services an operator intends to offer, it is usually advised to apply for every essential one. To facilitate decision-making, the following is a breakdown of all the standard kinds of gambling licenses obtainable from the KGC.

Client Provider Authorization (CPA)

The CPA is essentially an authorization that permits the holder to facilitate interactive gambling, usually from premises located within the jurisdiction. Evidently, a CPA is essential to operators who seek to offer gambling services from Kahnawake. It is also required to establish and run online gambling providers, as such it is common to all Kahnawake gaming commission casinos as well as bookmarkers.

Interactive Gaming License

An interactive gaming license holder can operate through the internet co-location facility. This particular license is one of a kind and not open to just any provider. So far, since formal operation in 1999, only one Interactive Gaming License has been issued by the KGC, which is to the Mohawk Internet Technologies.

The Key Person Permit (KPP)

Within the ranks of an operator that holds a CPA, at least one individual is designated with managerial or operational functions. This individual is required to apply for the Key Person Permit. However, for the proper management of a license holding company, more than one person is usually in charge of management and decisions. In which case the KPP application has to feature the names of each one of these individuals.

Casino Software Provider

This authorization allows the holder to locate and operate interactive gaming equipment at a co-location facility owned by an interactive gaming license holder. However, these services are only directed towards third-party operators, as holders aren’t authorized to sell interactive games like real money slots online directly to the players.

Amidst all, operators seeking a Kahnawake license for an online gambling site may only need to acquire the Client Provide Authorization (CPA) and the Key Person Permit (KPP).

The Procedure for Obtaining Kahnawake Licenses For New Operators

For new online gambling operators who perhaps are still in the process of putting together a corporate structure, the procedure for obtaining a Kahnawake license is a delicate one. From putting together the formal application to checking the requirements, getting a Kahnawake license could take quite the process.

Here’s a breakdown of all the essentials:

The CPA Application

For new online gambling operators, getting a Client Provider Authorization is entirely necessary, and should precede other modalities. To this end, every document necessary for the submission has to be put in place. These include a Business Entity Form and a Personal Information Form, which should be completed by each individual who is to apply for the Key Person Permit. The Personal Information Form also makes provisions for every major shareholder (Individuals with at least 10% stock).
Solidify Incorporation

Whilst putting together the application for necessary licensing, a new operator should ensure the appropriate incorporation of its business entity, simultaneously. This process includes registration with the appropriate authorities, tax planning, selecting software partners, etc.
Policy Compliance

Once the new online gambling provider is duly incorporated and applications for licenses are set in motion, it is time to ensure absolute compliance with standard and ethical requirements. Of all, Fair Play Policies, Transparency, and non-affiliation with Crime/ Fraud should be taken pretty seriously.
Responsible Gambling & Security

Also, Responsible gambling policies and support should be looked into to ensure alignment with the industry’s standards. Finally, new operators need to facilitate all-round provider security, as well as data confidentiality, as obtainable with the top online gambling platforms accessible at CasinoRIX.
Waiting/Approval

After the aforementioned boxes are checked and applications submitted to the Gaming Commission, a decision should be expected within 4-8 weeks. As previously established, the first license will be issued for a period of six months, after which a final review of the application will determine if a second license is issued.

Requirements to Get a Kahnawake Gaming License in 2024

Kahnawake Gaming license for New Operators

Whilst the requirements for acquiring gambling licenses are very similar across most jurisdictions, there are always a couple of peculiarities. On that note, the following is a rundown of requirements for getting a Kahnawake Gaming License, with regards to documentation.

A completed Kahnawake Gaming Commission Application form.
Original Bank References of the owners of the provider, dated three months and earlier.
Personal Financial statements from the Directors and major shareholders of the business, as proof of funds.
Certified copies of passports, dated three months and earlier.
Birth certificates of prospective Key Person Permit (KPP) holder(s).
Criminal Record Certificate, of the Owners and Major Shareholders.

Overall, these documents are required by the Kahnawake Gaming Commission, to establish the identity of the owners, their source of funds, as well as their capacity to operate a standard online gambling provider.

Documents that are Necessary for Company Registration

As established above, startups in the online gambling industry need to be properly incorporated to acquire the Kahnawake operating license successfully. Also, as part and parcel of the application process, documents realized after a business registration are also pivotal to getting licensed.

Going the extra mile, below is a lineup of documents, essential to the business registration process.

Article of incorporation: Outlines some basic details of the company
Bylaws/Operating Agreement
Memorandum of Association
Directors and Shareholders’ info
An Established Office Address
Resolution to Form a Company
Tax Identification Number

Taxes, Fees, and Cost of Kahnawake Gambling License

Kahnawake Gaming taxes

As previously established, Kahnawake’s gambling license also stands out for its cost-effectiveness and zero corporate taxes. And most of its license holders never experience unnecessary recurring charges. However, it is still very important to learn the exact figures of the Kahnawake gambling license cost.

Moving on, the following index contains the known fees for acquiring the various types of gambling licenses under Kahnawake’s jurisdiction.

License by type	Figure
Initial Application and Processing Fees	$40,000
Annual Licensing Fees	$20,000
Client Provider Authorization Renewal Cost	$5,000
Key Person License Application Fee (per person)	$5,000
Key Person Permit renewal fee	$2,500
Annual Key Person Permit fee	$1,000

Generally, a Kahnawake gambling license cost is one of the most friendly within recognized jurisdictions around. Moreso because the commission has a zero percent tax rate and no additional gaming taxes.

How Long Does it take to get A Kahnawake Gambling License

As subtly mentioned thus far, getting a Kahnawake primary Gambling license takes a series of processes with their waiting periods as well. And usually one of the most important questions to ask when applying is that of the time frame. To get a full scope of how exactly long it takes to acquire a primary gambling license with Kahnawake, here’s a highlight of the process in steps.

The Application Waiting Period: This is the interval between tendering a complete application to the KGC and getting feedback/approval. It usually takes between four to eight weeks maximum.

Final Approval: Provided the operator’s application is successful, a limited license is issued after the first waiting period. This license is for a stipulated period of six months, which is also a waiting period for the full License. Upon expiry, the Commission must have conducted the final approval for the full license to be issued.

Statistics and Facts about Kahnawake Gaming License

Here are some interesting facts about the Kahnawake Gaming Commission that are not pronounced enough:

The KGC has facilitated major refunds in the gambling industry

In solidarity with fairness for all, the KGC has overseen the return of betting funds to players who were unduly charged. A major example is the 2007 cheating scandal by Ultimate Bet, which led to an 18-month investigation by the Commission. In all, over $23 million in cheated funds were returned to the players.
All of Kahnawake’s Licensed games are hosted by the Mohawk Internet Technologies

All companies operating under the KGC’s authority are required to host their gaming sites at Mohawk Internet Technologies, a web-hosting company established in 1998.
KGC’s Legality has Never Been challenged

Amidst disputes about its authority to issue offshore gaming licenses as well as the legal crisis in 2007, the Kahnawake Gaming Commission’s operations and validity has never been challenged nor disputed by the Canadian Government.
Player Protection

The Kahnawake Gaming Commission places good emphasis on player support and goes the extra mile to resolve player-related issues. For instance, in 2013, the KGC Handled over 649 player complaints, through proper investigation, resulting in player satisfaction.
Number of Licensees

According to recent reports, the KGC has issued a total of 29 Client Provider Authorizations (CPAs). Some of these are held by prominent online gambling providers around.

The Rules For Switching to New Licenses for Existing Operators

Away from new operators, existing Licensees who wish to switch to different licenses also have to undergo certain laid-out processes. However, the good thing is that for returning operators, the process of switching to a new license isn’t as detailed as that of those applying for the first time.

Without further ado, here are all the necessary steps involved in switching licenses, as a certified Kahnawake license holder:

Compliance with Regulation

To apply for a license switch successfully, operators first have to ensure that they have been in alignment with the Commission’s regulatory framework. This framework covers major aspects such as fair gaming, responsible gambling, anti-money laundering measures as well as player protection. Overall, the Commission needs to ascertain compliance with its comprehensive regulations, to ensure future commitments.

Application Submission

An official bid or application has to be tendered by the operator, to initiate the switch of license. The application should be accompanied by details about the business, its operations, and intended changes under the new license.

Present a Transition Plan

During the application phase, the operator will be required to provide a detailed plan for transitioning from the former license to a fresh one. Essentially, this plan is meant to highlight operational changes and every relevant technical adjustment.

Migration and Renewal Fees

Depending on the nature of the license switch, operators may need to pay stipulated migration fees or adjust the payment structure for the old one. Also, operators will be required to consent to the financial terms and conditions of the new licenses they wish to migrate to.

Overall, the aforementioned rules might differ slightly, depending on the licensee undergoing migration, its overall compliance with the KGC’s regulations, etc.

Conclusion

In the end, Kahnawake’s gambling jurisdiction is one of the most recognized license bases for online gambling businesses. The Commission presents several reasons for prospective licensees to gambling license, which includes its fairly wide reach and its optimal acquisition modality.

Also, owing to reasons like its 0% corporate taxes, the Kahnawake’s gambling license is ideal for startups in the industry. In conclusion despite its considerably few shortfalls, the commission offers one of the most inclusive as well as accessible licensing services around.

Frequently Asked Questions

Who can apply for a Kahnawake Gaming License?

All legitimate gambling entities with a recognized operational structure can apply for the Kahnawake gambling license, provided they align with Kahnawake’s requirements and regulatory framework.
What is the main function of the Key Person Permit?

The key Person Permit enables the holder(s) who are in a major managing position within the company to make decisions with the KGC concerning their operations.
What is the cost of a Kahnawake gambling license?

For the initial application, a Kahnawake gambling license costs about $40,000. Also, Fees for renewals range from $20,000 depending on the type of license.
Are there any restrictions under the license?

Yes, the KGC restricts operations in certain jurisdictions like the USA. Also, all FATF non-cooperative countries are fairly restricted as well.