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:
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.
There are six types of Kahnawake gambling licences:
Client Provider Authorizations (CPA)
The document gives the right to organise gambling activities and lotteries, as well as to accept sports and eSports bets.
Most entrepreneurs planning to open iGaming start-ups apply for this type of permission
Casino Software Provider Authorizations (CSPA)
CSPA owners can only interact with B2B partners (operators, bookmakers, and hosting providers). They cannot offer gambling services directly to gamers
Live Dealer Studio Authorizations (LDSA)
The document is intended for owners of live studios that broadcast live roulette, baccarat, poker, and other games. It is needed to organise video streaming and launch casinos
Inter-Jurisdictional Authorizations (IJA)
Kahnawake casino licence in the IJA format is designed for entrepreneurs who have already opened iGaming projects in another jurisdiction.
The document allows businessmen to legally transfer their technical facilities (equipment, servers, etc.) and part of the personnel in Kahnawake
Key Person Permits
This is a special permission for significant employees of a company (heads, chief administrators, and operational managers). It is issued in addition to the CPA, CSPA, LDSA, and IJA documents
Interactive Gaming Licence (IGL)
The document gives the right to manage a data centre and provide gambling services to CPA, CSPA, LDSA, and IJA class operators.
The sole owner of the IGL licence is Mohawk Internet Technologies (MIT)
The procedure consists of several stages:
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:
Before obtaining a licence for a casino in Kahnawake, the entrepreneur needs to collect the following papers:
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.
Kahnawake Gaming Commission considers the application from 4 to 6 months. During this time, the body:
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.
The list of the operator's main expenses includes:
The slightly inflated licensing price is fully compensated by the absence of taxes in the jurisdiction.
Consider the main reasons that motivate operators to buy casino licences in Kahnawake:
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.
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.
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 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.
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.
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.
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 Indian reservation is a popular place to launch online casinos.
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:
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