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Last Updated on 05/09/2022

Introduction to the Canadian Online Casino License (KGC)

Canadian Casino LicenseThis gambling commission also known as Kahnawake Gaming Commission has been in operation since 1999. It is the licensing and regulatory authority of the board of governors in the Mohawk Territory of Kahnawake.

Their presence is just for the sake of offering some benefits while their official website and other information are pretty obsolete by today’s standards. However, you get all the information like its inception.

Kahnawake was one of the first jurisdictions in the world to offer an interactive gaming industry and opportunities for setting up businesses. On July 8, 1999, the Commission enacted its Regulations concerning Interactive Gaming. And, it has been regulating gambling since then, longer than any other regulator.

Online Casino Groups with a Canadian Kahnawake Casino License

Basic Information

Recently, they added online gaming because the original ones included only land-based gaming systems. The new ones are licensed and operated by Mohawk Internet Technologies, a data center located within the Mohawk. Continent 8 Technologies manages its operations worldwide and the policies that make up the regulations.

They even have a Wikipedia page that lists various properties and rules of the commission. The KGC, as they are known in abbreviated form, is a gaming regulatory body that licenses casinos, online casinos, poker, slots, and even sportsbooks websites because they need special permits. They also regulate the 3 land-based casinos located within the Mohawk Territory of Kahnawake. Kahnawake is a first nations reserve in the city of Quebec in Canada.

The Kahnawake Gaming Law became the first to accept gambling as a permitted business and this resulted in the Mohawk Council of Kahnawake. Their interactive gaming division came online in July of 1999. Because of this, they are considered one of the pioneers in the iGaming industry.

The currency issue permits are known as Client Provider Authorizations and charge nominal fees. This includes usually an initial of US$25,000, plus an application fee of US$5,000 for each Key Person Licence. And, they are both refundable if the permit is not granted, so that is all safe and sound.

Legality & Activity of Kahnawake

Consistently they have stated that the council and the commission are meant to protect the “aboriginal” rights and enacting the Kahnawake Gaming Law allows them to do so because they have existed from time immemorial. They further claim that they were just recently recognized and amended in Canada’s Constitution in 1982.

Because they came into existence in 1996, the activities of the Gaming Law and Commissions stand unchallenged till this day under Canadian law and also under any other jurisdiction that they are applicable to do not have an objection to them. Just in 2007, there was a court hearing when the Council did not grant a permit to a business, Quebec decided in the favour of the commission. Because of this, the court stated that it does not feel any obligation to validate or invalidate the law of the council.

Because of this, the regulatory activities of the body have been going on uninterrupted since its inception. Currently, the KGC licenses over 50 gaming operators in the jurisdiction and they represent a combination of 250 online gambling sites. This is not a big number considering many like the MGA, but the KGC is still a lawmaker in its regions. To learn more about their regulations, you can go to their official site online and figure out the details.

Regulations of KGC

As per the powers from Section 35a under the Kahnawake Law, the Commission enacted their laws and for 15 years they came up with Regulations that have also been amended a number of times. The Commission was assisted in drafting with the help of Frank Catania, who was the former director of the New Jersey Division of Gaming Enforcement, and also Murray Marshall, General Counsel to the Commission. These Regulations are designed to ensure that the interactive gaming industry is one of their prime targets. They have several key principles to promote the government policies to allow more licensing as businesses feel pertinent. These include the following.

They offer a lawful and legal basis for gambling businesses to function under the regulation and control of interactive gaming within the Mohawk Territory of the Kahnawake. Then, they also ensure that interactive gaming is a regular exercise and is conducted fairly, responsibly, and honestly. Because of this, players and businesses can function well. This allows them to prevent interactive gaming from being linked to any crime or criminality in their jurisdiction. Because of this, many businesses can peacefully operate without any worries from anyone. This also makes sure that interactive gaming treats its players and consumers fairly and they shall pay off the winners promptly as well.

Further, the information related to player accounts is always confidential and held in the strictest confidence because of the usual reasons like privacy. Finally, it is the policy of protecting persons under the age of 18 to get into the vulnerable company at these sites. This can accumulate to give a better view of the policies and services they hold for all.

The Application Process for the Canadian Online Casino License

The entire process is streamlined for easier use and KGC is a member of simple policies. If you’re a business and you need different permits, then you can go to their website and fill in the details. This allows them to get a Client Authorization Permit and they can use it for several types of games.

For example, their current charges include a fee of Forty Thousand (US $40,000.00) US Dollars and this is equivalent to a 10% increase year on year. Similarly, the Key Person Licence Application fee is in the amount of Five Thousand (US$5,000.00) US Dollars for each proposed key person and is also a valid way of getting control of the permits in due time.

There is a complete way to prepare work and information related to the application process, and their website does not offer too many details. But, it seems that it is fairly self-explanatory. There are four different types of forms, and this makes a good reason for them to sign the treaties.

• How to Prepare a License Application?

An application for client authorization needs a set of documents that will decide if they are granted the permit. Because of this, they have a sample document on the website that lists briefly the needs. Client Provider Authorization of CPA, as they call it comes under Schedule D of their Regulations. It identifies the business that is applying for CPA and if they get the permit, the URL of the website from their company will become operational and also KGC will list it under their official banner. Because of this, they get an official acknowledgment from the commission.

The 2nd is the business entity application form, which comes under Schedule C of their regulations. This must go along with the above form during the first application for CPA. The 3rd form is the Personal Information Form and this lists under Schedule C and obeys the same. This must be submitted by each individual of the company, for example, each director of the corporation applying for the permit. Then, each shareholder of the company owns more than 10% of the shares of the firm and has a controlling interest in the business.

Finally, each person who also submits a Key Person License Application Form should also fill this additional personal form. Because of all these, there is minimal effort in the whole process. The Key Person License Form comes under Schedule E and anyone who is a nominee and exercises a managerial position in the firm has to fill this form. Finally, there is the Control System Submission, which comes under Schedule I of Regulations. Because of this, a complete control system of the corporation must go to the commission.

However, for publicly traded companies, there may be additional norms. For example, they must also include a list of all their directors and curriculum vitae of each of them. And, it must also accompany their financial reports for each year for at least 3 years in the past. The IGL license holder is Mohawk Internet Technologies for all the above. Next, you must know the fee structure of KGC, and this gives a lot more details.

Fee Structure for IGL

The application fee must reach the commission before the application comes through, and this is important. Only then the processing will commence and this is a total of USD 50,000.

All further information during the application process will also be made available on KGC’s official website. When it comes to such permits, one must know their permit holders.

Permits Offered by the Canadian Casino License

Currently, similar to the above IGL, KGC offers four other types of licenses that players and businesses can leverage based on their needs. It is a similar structure to others but has not changed in all these years.

The IGL or Interactive Gaming License

It is the most common and sought-after license. IGL is given to an approved hosting facility in Kahnawake territory.

One and only one IGL is issued to a business firm and at a time, they cannot apply for another. Because of this, since 1999 Mohawk Internet Technologies has held the sole IGL issued by the commission in the area.

Client Provider Authorization or CPA

It is the one which we discussed in detail above. This is the 2nd type of license that businesses usually receive and IGL is not available for anyone because of their restrictions. They are issued to approve entities that want to offer interactive gambling services in the area and the hosting facility is available in Kahnawake.

The holder for CPA is the Authorization Client Provider or ACP. There are no limits on the number of CPAs that the commission can offer because of which all businesses and gambling websites that operate in the KGC jurisdictions come with the CPA license.

This is similar to the Type 1 and Type 2 B2B Gaming Services license from the MGA. An ACP must always be hosted at the hosting facility to counter their measures. And, a facility that holds IGL must have an ACP from the business on their premises. This means any type of gambling service like a casino, poker, and sportsbook.

Inter Jurisdictional Authorization or IJA

It is the third kind that brings some freshness. This is a type of license issued to an entity that holds a valid gaming license already and from any other jurisdiction such as MGA, because of which their labor decreases.

The other jurisdiction like the MGA is the primary one and if they wish to locate some of their equipment and services to Kahnawake, Mohawk Territory Council grants permission to legally sign this IJA license. However, the Commission KGC does not offer duplication of all the services offered by the primary jurisdiction. Because of this, they don’t have to go through a lot of trouble setting up their facilities from scratch.

Key Person License or KPL

It is a simple formative license or permit which is issued to a single person at a time. Because of this, this is the name.

This is issued to a person who performs the managerial functions and operational decisions of a firm or business that is in their jurisdiction. Because of this, any business that holds a CPA can only have additional people using a KPL license. This must always be confidential, for sure.

Casino Software Provider Authorization or CSPA

It is the final license that many would want because it allows any business or company to offer their software to casinos that operate within the Kahnawake territory. The holder of a valid CSPA license can locate or operate an interactive gambling equipment facility in their jurisdiction as well, which is a double win situation. Any casino license or third-party software provider can apply for this license.

Conclusion to the Canadian online Casino License

The KGC is a government body that is a part of Mohawk and aboriginal tribes in Quebec. Because of its rich history, they have been operational since 1999. This is restricted to only local businesses and does not offer a licensing mechanism like international casinos and big gambling studios, or software providers.