Kahnawake Gambling License

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Advantages of the Kahnawake Gambling License

Startups and small businesses engaging in gambling economic activities choose the Kahnawake jurisdiction for cost-efficiency made possible by low incorporation, application, and supervision fees. The saved capital can instead be invested in the improvement of gambling services and business development, as well as the preparation to obtain licenses from more prosperous but stricter jurisdictions that open doors to lucrative markets. Our friendly and experienced team here at Regulated United Europe can help you navigate these choices.

Another advantage of having a gambling license from Kahnawake is that a new gambling company can be set up very swiftly which allows you to have a fully operational gambling business that generates profit within a couple of months instead of having to wait half a year or more.

In Kahnawake, gambling licensees are entitled to a 0% Corporate Tax on all gross gaming revenues and there aren’t additional gaming taxes. This approach is beneficial to startups with low budgets who are in their infancy stage as it also enables gambling entrepreneurs to invest more funds in the business, accelerate further growth, and turn an initial idea into an established business.

Advantages

Advantages of the Kahnawake Gambling License

Startups and small businesses engaging in gambling economic activities choose the Kahnawake jurisdiction for cost-efficiency made possible by low incorporation, application, and supervision fees. The saved capital can instead be invested in the improvement of gambling services and business development, as well as the preparation to obtain licenses from more prosperous but stricter jurisdictions that open doors to lucrative markets. Our friendly and experienced team here at Regulated United Europe can help you navigate these choices.

Another advantage of having a gambling license from Kahnawake is that a new gambling company can be set up very swiftly which allows you to have a fully operational gambling business that generates profit within a couple of months instead of having to wait half a year or more.

In Kahnawake, gambling licensees are entitled to a 0% Corporate Tax on all gross gaming revenues and there aren’t additional gaming taxes. This approach is beneficial to startups with low budgets who are in their infancy stage as it also enables gambling entrepreneurs to invest more funds in the business, accelerate further growth, and turn an initial idea into an established business.

Gambling Regulations in Kahnawake

The gambling regulatory framework imposed by the Kahnawake Gaming Commission is designed to regulate and support the development of the gambling industry by enabling businesses to expand in a sustainable way and without harming society. The authority works tirelessly to ensure that all online gambling activities conducted from the Kahnawake jurisdiction comply with applicable national regulations.

The Kahnawake Gaming Commission is well-respected for duly imposing regulations related to anti-money laundering and terrorist financing, responsible gambling, customer service, fairness, advertising, and transparency.  To ensure a high standard of player protection, the Kahnawake Gaming Commission also provides players with means to resolve disputes and address player complaints, including through third-party mediation and arbitration. The authority has a full-time dispute resolution officer whose sole responsibility is to ensure that issues between players and gambling operators are resolved efficiently, fairly, and promptly.

The authority maintains a detailed record of all customer complaints and conducts investigations in cases where an operator refuses to pay out a player. The investigations can result in closing the operator’s account. The authority also may monitor operators to ensure fairness in games which guarantees that all the involved parties are satisfied with the outcome of the game.

The following key pieces of legislation and regulations apply to gambling operators in Kahnawake:

• The Kahnawake Gaming Law
• Regulations Concerning Interactive Gaming
• Regulations Concerning Anti-Money Laundering And Counter-Terrorism Financing

Regulations Concerning Anti-Money Laundering and Counter-Terrorism Financing apply to all forms of interactive gaming based in and offered from within Kahnawake, including interactive gaming involving players situated both within and outside Kahnawake. The Kahnawake Gaming Commission strives to apply world-class standards and may partner and share information about detected money laundering activities with other domestic and international authorities. However, all information received from or about compliant gambling operators under these Regulations is treated as confidential and you can be assured that no person working for the Kahnawake Gambling Commission may disclose any of it to third parties unless that person is authorized to do so.

GAMBLING LICENSE IN Kahnawake

 

* Requirements regarding the minimum share capital of the company depending on the type of game it offers

Application fee – US$35,000

 

Types of Gambling Licenses in Kahnawake

On the basis of the offered gambling services, a gambling operator can choose from several types of Kahnawake gambling licenses that cover all markets except the USA. It’s possible to seek licenses for such games as live casino, video, live table, eSports betting, sports betting, poker, slots, and basically any other type of gambling activity.

The Kahnawake Gaming Commission issues the following types of licenses and permits:

• Interactive Gaming License which allows holders to operate a co-location facility that provides internet services to Authorized Client Providers; since 1999, only one license – to Mohawk Internet Technologies – has been granted
• Client Provider Authorization which authorizes holders, known as Authorized Client Providers, to conduct interactive gaming from the co-location facility owned and operated by the Interactive Gaming License holder as well as other premises located in Kahnawake; this is the most common gambling license in Kahnawake, valid for 5 years
• Casino Software Provider Authorization which permits holders to locate and operate interactive gaming equipment at the co-location facility owned and operated by the Interactive Gaming Licence holder, and provide casino software to a third-party operator (holders of this license aren’t authorized to sell interactive games directly to players)
• Live Dealer Studio Authorization which allows holders to operate a live dealer studio, organize live dealer games, and run interactive gaming-related activities from premises located in Kahnawake
• Inter-Jurisdictional Authorization which permits holders with a gaming license from another jurisdiction to move some or all of their equipment and/or staff to Kahnawake
• Key Person Permit which authorizes holders to be employed by either the Interactive Gaming License or the Client Provider Authorization holder and perform key managerial or key operational functions

Requirements for License Applicants

To run a gambling business in Kahnawake, you must first incorporate a company in Kahnawake. Usually, such a company requires 2 licenses – a Client Provider Authorization and a Key Person Permit but it ultimately depends on the type of your gambling activities. All Client Provider Authorization licensees are required to appoint at least one key person with a Key Person Permit license to perform key managerial functions for or on behalf of the Authorized Client Provider. Often several Key Person Permits are required if there are several persons responsible for key functions, and managerial decisions.

If an applicant is a corporation, the following aspects are evaluated:

• A good business reputation, sound current financial position, and financial background
• A satisfactory ownership and corporate structure
• The appropriate resources, services, skills, and technical ability to provide the services authorized by its license, authorization, or permit
• Each director, shareholder with 10% or more ownership of or controlling interest in the corporation, and key person as a potentially suitable individual

The authority evaluates the following aspects of an individual applicant:

• Whether the person is of good character and honest
• Personal, professional, and business associations
• History of criminal convictions
• History of civil litigation
• Credit history or bankruptcies
• Personal and professional references
• Education, training, and work history

The following documents are required to apply for a Client Provider Authorization license:

• Application form for a Client Provider Authorization license
• Business Entity Information Form
• A detailed description of the games offered and gaming software to be used
• Personal Information Forms completed by the company’s directors, shareholders with at least 10% of ownership, and key persons applying for a Key Person Permit
• Control System Submission
• A letter from the Interactive Gaming License holder informing that the holder is aware of and consents to having the applicant’s secondary Client Provider Authorization appended to its Interactive Gaming License
• If the applicant is a publicly tarded corporation, a list of all directors, with a biography or CV of each director
• For publicly traded corporations, annual financial reports for the past 3 years are also required
• A confirmation of a random number generation (RNG) application and evidence of its fairness (third-party certification) if applicable
• Information about server hosting in Kahnawake

Furthermore, the following documents must be provided by shareholders, key persons, directors, and beneficial owners:

• Certificates of no criminal record
• Notarized copies of passports
• Birth certificates
• Original bank references
• Personal financial statements
• Original or notarized copies of utility bills

You should note that all documents must be submitted in the English language and dated no greater than 90 days. If your original documents are written in another language, you’ll need sworn translation services. Our team here at Regulated United Europe will be pleased to help you find the most cost-effective, efficient, and quality solution.

Every Key Person Permit applicant is required to submit the following documents:

• A Key Person License Application Form
• Personal information
• A letter from the Authorized Client Provider addressed to the Kahnawake Gaming Commission proving the existence of the key relationship, indicating the type of key function the proposed key person should perform, providing a detailed description of responsibilities the proposed key person should take up, as well as the type of training the proposed key person has received that would qualify them to take up this role

It’s crucial to ensure compliance with responsible gaming policies which include fair play, transparency principles, and preventing minors and vulnerable people from accessing the gambling site. An applicant must also create internal policies to ensure that the privacy, confidentiality, and security of players are protected.

The application fee for a Client Provider Authorization license is 40,000 USD (approx. 35,600 EUR) which is lower than in many reputable jurisdictions. It covers the estimated cost of conducting the due diligence regarding the applicant company and the individuals who have provided Personal Information Forms. This part of the fee is non-refundable. It also includes the first annual licensing fee of 10,000 USD (approx. 8,900 EUR) which is refunded if an application is refused. The Client Provider Authorization License fee doesn’t include any costs associated with the Kahnawake Gaming Commission’s assessment of the applicant’s Control System Submission as for these costs a separate invoice is issued. A key Person Permit application fee is 5,000 USD (approx. 4,450 EUR) per applicant. All of these fees must be paid prior to the submission of the application.

Other associated costs are as follows:

• Client Provider Authorization annual licensing fee – 20,000 USD (approx. 17,800 EUR)
• Client Provider Authorization renewal cost – 5,000 USD (approx. 4,450 EUR)
• Annual Key Person Permit fee – 1,000 USD (approx. 890 EUR)
• Key Person Permit renewal cost – 2,500 USD (approx. 2,200 EUR)

Blocked zones for Kahnawake

USA

Red zones for Kahnawake

Australia, Austria, Belgium, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Greenland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Spain, Sweden, Switzerland, United Kingdom

Best Kahnawake Gaming Commission Licensed Casinos

List of companies with gambling license in Kahnawake

Kahnawake Gambling License Application Process

Once you’ve established a company in Kahnawake, you’re ready to apply for a gambling license. If all the submitted documents are in order, the consideration process for a Client Provider Authorization license usually takes 4-8 weeks. If the application is successful, the license is initially granted for 6 months and then this period is used to fully analyse the license holder. Compared to other reputable jurisdictions, this process is very efficient.

The licensing process essentially consists of the following phases:

• Phase 1 – application phase (4-8 weeks to complete)
• Phase 2 – preliminary 12-month permit (12 months to complete)
• Phase 3 – monitoring of the Client Provider Authorization (ongoing)

The steps of Phase 1 are the following:

• Payment of the application fees
• Submission of the application to the Kahnawake Gaming Commission officer where a Kahnawake Gaming Commission compliance officer is assigned
• A preliminary review of documentation to ensure all the required documents are provided
• An email is sent to Mohawk Internet Technologies to notify them of the new application
• The commencement of the due diligence process where applicable reports must be completed and returned to the Kahnawake Gaming Commission
• Mohawk Internet Technologies acknowledges the application and sends a letter of recommendation to the Kahnawake Gaming Commission regarding the applicant
• Cascading Style Sheets (CSS) testing procedure begins and a CSS report is drafted
• If the CSS report is approved, the application is added to the weekly agenda, and findings are presented to the Kahnawake Gaming Commission which decides whether to grant a license
• If the applicant is rejected, the 10,000 USD (approx. 8,900 EUR) is refunded

During Phase 1, the authorities aim to establish the identities of the company owners, the source of funds, and whether the applicants are competent to operate a gambling business. To ensure that the applicants are fit and proper, and the company is well-set up for intended operations, the Kahnawake Gaming Commission can reach out to request further information or additional documents.

The steps of Phase 2 are the following:

• If a preliminary 6-month license is issued, the CSS testing continues to generate a final report and make recommendations to ensure compliance
• Mohawk Internet Technologies is notified of the decision
• The holder is sent a contact information sheet and an URL listing is also requested
• The compliance officer is notified of the URL additions and the tracking process begins
• The compliance officer creates a certificate and forwards the HTML code to the license holder

In no less than 30 days prior to the expiry of the initial six-month license, the Kahnawake Gaming Commission reviews the licensee’s performance and evaluates if the licensee has sufficiently implemented the applicable continuous compliance program. The authority also investigates if there has been an inordinate number of complaints from players or other third parties, and if the licensee has broken any laws, breached any regulations, or committed any other act that could have negatively affected the credibility or reputation of the Kahnawake Gaming Commission.

The steps of Phase 3 are the following:

• Provided that Phase 2 is successful, the Kahnawake Gaming Commission conducts a final review of the file at the end of the initial permit period and a decision on whether to grant a second Client Provider Authorization license is made
• Continuous compliance and its monitoring begin and the Kahnawake Gaming Commission process of license renewal for 5 years applies to the licensee

One of the advantages of this application process is that the first 2 phases will give you an opportunity to decide whether the Kahnawake jurisdiction is the most suitable choice for your gambling business. Also, along the way, you’ll be able to improve your operations and bring them nearer to the world-class standards required by the most reputable business partners and jurisdictions.

Requirements for Kahnawake Gambling License Holders

Once a license is granted, the Authorized Client Provider has 6 months after commencement to ensure operational compliance with AML/CFT regulations, including completion of the risk assessment and implementation of appropriate policies and procedures.

Applicable AML/CFT rules include the following:

• Conduct a risk assessment in accordance with its size and nature to identify and assess the risks of money laundering and financing of terrorism to which its business may be subject
  • The assessment must take into consideration the company’s customers, the countries or geographic areas in which it operates, its products or services, transactions, delivery channels, and third parties that provide services to the gambling business
• An applicant is obligated to establish and maintain policies, controls, and procedures as part of its commitment to mitigate and manage effectively the risks of money laundering and financing of terrorism identified in any conducted risk assessment
• Appoint a senior manager, who can also have other duties, to monitor and manage compliance with the policies, controls, and procedures adopted by the company
  • The main responsibilities include the identification of any situations at higher risk of money laundering or financing of terrorism, the maintenance of risk assessment records and tracking of any changes, and keeping the company’s senior management fully informed
• Have processes in place to undertake customer due diligence (CDD) identification measures when a customer opens an account, i.e. when a customer registers with an operator and accepts the Terms and Conditions of the site

The Kahnawake Gaming Commission takes user complaints very seriously and those that violate the rules are suspended. The regulatory practice shows that non-compliant operators risk having their licenses suspended and revoked. Therefore, every gambling licensee should carefully follow all rules related to player and business partners’ protection, the prevention of getting minors or vulnerable people involved in gambling, and overall ethical business practices. Such an approach supports the good reputation of the Kahnawake authorities as well as helps build a loyal client base.

If you think that these regulations are right for you, our team here at Regulated United Europe will be delighted to support you in incorporating a new company and obtaining a gambling license in Kahnawake. With dedicated legal advisors, tax experts, and financial accountants at your side, you will find the incorporation and application processes easy, frictionless, and transparent. Contact us now to schedule a personalized consultation and set the stage for long-lasting success.