Kahnawake iGaming Licence: Strengths, Expenses, and Taxes

The entertainment field is developing rapidly. New markets are opening up with excellent prospects for businesses’ growth and scaling.

CASEXE describes the features and benefits of launching an iGaming start-up in Kahnawake. In our material, you will find answers to the most actual questions:

• How to get permission?
• How to pass a regulatory ​​inspection?
• How much money is needed to start?

Features of the Gambling Field’s Regulation

Kahnawake is a small community near the city of Montreal. The Indian reservation is famous for the special procedure for regulating the gaming industry. This is one of the few territories in Canada and North America where all types of gambling are legalised, including the online and offline sectors.

The jurisdiction was one of the first in the world to allow the licensing of casinos. The Kahnawake Gaming Commission (KGC) was created in 1996. The legalising procedure (MCR No. 26) came into force in 1999.

For over 20 years, KGC has issued more than 200 licences of various types and has become a home for above 50 international companies. The jurisdiction is chosen by them due to low taxes, the opportunity to receive Internet traffic from abroad, and transparent market conditions.

Several land-based establishments with slot machines and card tables are located in Kahnawake. This is the only place in Canada where bets are allowed at stationary points. Beautiful local nature, historical buildings of Montreal, and modern casino complexes attract thousands of travellers all year round.

Gambling and tourism are the two key industries of the Indian reservation. They provide 90% of the budget revenues.

What Permission Classes Does KGC Issue?

There are six types of Kahnawake gambling licences:

How to Obtain a CPA Casino Permit in Kahnawake

The procedure consists of several stages:

Assigning a Key Person

This could be a manager, administrator, chief operating officer or any other employee who performs important management tasks in the company.

For each key person, the operator prepares a package of documents:

• the application for obtaining Key Person Permits;
• personal information (passport data, education, work experience);
• the motivation letter that describes the duties of the employee within the company;
• the certificate of no criminal record.

Preparing and Sending Documents

Before obtaining a licence for a casino in Kahnawake, the entrepreneur needs to collect the following papers:

• business plan;
• the information about the company (full name, legal address, and bank account number);
• the sources of funding for the iGaming start-up and key facts about its beneficiaries;
• the description of the casino software used (games, platforms, and payment services), conformity certificates;
• video presentation of the gambling site control system;
• reports for the last 3 years (for public corporations).

Registration Fee Payment

To open licensed online casinos in Kahnawake, operators have to pay $35,000 as a one-time fee. The money is returned to applicants’ bank accounts if they do not obtain the desired documents.

Entrepreneurs also transfer $5,000 for Key Person Permits. Businessmen need to pay the cost of each application for a significant employee. This means, if there are three people with the Key Person status in the company, $15,000 must be deposited.

Checking the Application by the Regulator

Kahnawake Gaming Commission considers the application from 4 to 6 months. During this time, the body:

• verifies the authenticity of documents;
• analyses the business plan;
• initiates Due Diligence (end-to-end verification of the iGaming start-up’s investors);
• informs Mohawk Internet Technologies (MIT) about the rent of server storage;
• approves the application of the operator.

The licence for gambling activities in Kahnawake is issued only for 6 months at the start. This is a trial period, after which the commission re-evaluates the operator's activities. The focus is on compliance with Responsible Gambling principles, the absence of complaints from players and B2B partners, the use of certified software, and other parameters.

If the entrepreneur worked honestly, the Kahnawake online casino licence will be issued for 5 years. After the expiration of the term, the document can be extended by a simplified procedure.

How Much Does a Casino Licence Cost in Kahnawake?

The list of the operator's main expenses includes:

1. The application. The minimum amount to start is $40,000. It consists of two parts — $35,000 for a basic CPA class licence and the first year of work in the market. Another $5,000 is a payment for Key Person Permits for one managerial position.
2. The permit fee. To find out how much a Kahnawake casino licence costs, you need to multiply the annual price ($20,000) by four years. As a result, the entrepreneur needs to pay $80,000, without taking into account the cost of Key Person Permits. Renewing the document for one key employee will cost another $4,000 over 4 years.
3. The assessment of the applicant's control system. Its cost is calculated by the regulator on an individual basis. After that, the operator receives an invoice for payment.
4. The extension of permission. The entrepreneur should deposit $7,500, including $5,000 for the renewal of the main document and $2,500 for Key Person Permits.

The slightly inflated licensing price is fully compensated by the absence of taxes in the jurisdiction.

Benefits of Launching an iGaming Start-up on a Canadian Reservation

Consider the main reasons that motivate operators to buy casino licences in Kahnawake:

Expanding the Geography of Users

The CPA class document covers all markets except the United States of America. A gambling site can work with a .com domain address. This means that it can attract players from many European, African, and Asian countries.

The main requirement for the operator lies in the fact that the interaction with the audience should not contradict the laws of specific countries from which Internet traffic comes. The entrepreneur is also required to identify the age of gamblers and analyse payments for compliance with the AML policy.

Complete Absence of Taxes

The cost of operating an online casino with a Kahnawake licence mainly consists of the annual fee. The entrepreneur does not pay any other taxes, which reduces the businessman’s costs. The saved funds can be redirected to the strategic development and scaling of the business.

The complete absence of taxes makes the jurisdiction one of the most attractive places to launch an iGaming start-up. In terms of the fiscal burden on business, Kahnawake is ahead of many popular offshore territories: Belize, Gibraltar, Costa Rica, and others.

Convenient Regulation

The KGC department puts forward quite flexible and loyal requirements for licence applicants. The request review process does not exceed eight weeks. If for some reason the operator's application turns out to be incomplete (for example, some documents are missing), the commission will send it for revision, and will not write a refusal to issue a permit.

The main tasks of KGC are as follows:

• the communication with entrepreneurs;
• the creation of a favourable investment climate;
• the support for responsible gambling.

The Commission stands for fair and safe gaming that brings good money to the budget of the Canadian region.

The operator is free to choose payment software, entertainment content, and gambling site management systems. The main thing is that these should be certified solutions from reliable providers.

You can launch a turnkey casino with a Kahnawake licence including games from Microgaming, NetEnt, Sheriff Gaming, Pragmatic Play, Playtech, and other software manufacturers.

International Prestige

Gambling platforms with Kahnawake permits are trusted by players and B2B partners.

The entrepreneur will not have any problems with the conclusion of agreements with software manufacturers, affiliates, hosting providers, and other partners.

Political Stability of the Region

The legislative base of the Indian reservation has not changed for more than 10 years.

When applying for licensing, operators already know how they will work for at least the next 5 years. We are talking about taxes, rules for identifying gamers, and other aspects.

Access to Advanced IT Solutions

The MIT (Mohawk Internet Technology) global data centre is located in Kahnawake. This is one of the largest information processing organisations in the world. Its structure includes dozens of servers. Its throughput is 20,000 requests per minute. Almost all gambling companies from North America rent servers from MIT.

The Main Things about Obtaining a Kahnawake Gambling Licence

The Indian reservation is a popular place to launch online casinos.

• The jurisdiction issues six classes of permits. Entrepreneurs will be primarily interested in the Client Provider Authorizations document. It gives the right to interact with the B2C sector. The operator can accept bets from players within an online casino, bookmaker site, poker room, and lottery portal.
• Before applying, the entrepreneur should assign at least one responsible representative of the company and obtain a Key Person Permit. The management team has to undergo Due Diligence. The commission will evaluate the iGaming project’s investors and related persons.
• The cost of applying for a CPA class permit is $35,000. The licence is valid for 5 years.
• The advantages of launching an iGaming start-up include the expansion of users’ geography, the complete absence of taxes, comfortable regulation, international prestige, the political stability of the region, and access to advanced IT solutions.

You can order a Kahnawake licence at the CASEXE studio. We will help you with preparing and sending documents, creating a business plan, applying, as well as consulting on all technical and legal issues.

CASEXE offers its clients to buy profitable iGaming solutions:

• a turnkey online casino;
• a White Label platform;
• a Bitcoin portal;
• a VR slot platform, and others.