Online casino licenses come in all kinds of forms. Some of these licenses are more or less attractive for operators around the globe. One sort of license that oftens pops up is the Kahnawake gambling license.
But what is the Kahnawake gambling license? And why is it so attractive for operators around the globe? Read along to find out in this article by QMRA!
What is the Kahnawake gambling license?
The Kahnawake gambling license has been around for a while now. Established in 1996, it operates from the Kahnawake Mohawk Territory, located just outside of Montreal, Canada. As it was this early in the internets history, the jurisdiction was one of the first in the world to regulate online gambling. The licenses that can be obtained range from casinos to poker and sportsbooks.
This license is often attractive to operators because of the following points:
- The application proces is relatively straightforward
- The licensing fees are relatively low, compared to those of the UK Gambling Commission for example
- Government oversight and ongoing compliance requirements are surely not the most stringent in the world
- Canada is a trusted country for many people
Although Kahnawake license holders must host their servers within the jurisdiction, this does not hold them from operating outside of it. Having a license from a region within Canada helpst to legitimize the operator holding this license abroad.
How the license works
Each applicants must be able to demonstrate financial viability and company legitimacy. Background checks will be performed and must always be succesfully completed. However the limited oversight is a point of scruteny from save gambling advocates. The lack of active monitoring and penalization seems to be the main contributers to this.
The risks associated with the Kahnawake Gambling License
While the license might be fairly easyily obtainable by operators, the risks for players are a different story. Playing at these casinos can pose serieus risks especially if you are not a resident of the Kahnawake jurisdiction.
Use of falls legitimacy
Although the use of gambling licenses shows a form of legitimacy, it is often used to mislead players. This has everything to do in how gambling licenses work in their basis. Every country which has legitimized online gambling, will have their own licenses and procedures.
By using a Kahnawake license operators try to convince players of other jurisdictions that they are legit in the area they life in. But if for example a player is from a European country with its own regulated market, the Kahnawake license holds no value. to be even more clear, it is in most jurisdictions even straight up illegal for these operators to target residents of other jurisdictions.
Risks for players
Playing at these operators outside of the Kahnawake jurisdiction can pose serious risks for the player. The reason for this is that player protection is very low, especially when considering other regulated markets. The following points can be a real risk for players:
- Addiction prevention and player safety
- Money laundering and fund safety
- Privacy
Addiction prevention and player safety
Legalized markets have stringent legislation regarding player safety. Identification of players, age verification, the checking of bank accounts and monitoring of playing frequency is basically absent. In regulated markets operators have to implement technologies and the right personnel to combat excessive gambling and gambling addiction. When these measures are not in place players can be at serieus risks of developing such an addiction.
Money laundering and fund safety
When using a casino abroad which does not have a license in your jurisdiction, a player can never be sure what happens to their funds. There are no obligations for casinos abroad to adhere to anti money laundering legislation in your country. When depositing money into an account, the player will not know if it is actually there. This is a growing issue especialy with crypto casinos. This money could be used for money laundering.
Additionally when a player wants to pay out any outstanding funds, there is no guarantee that the payout will be succesfull.
Privacy
Privacy rules differ greatly from region to region. When giving sensitive information such as bankaccount, name and date of birth, a player must know if this information is kept safely. With casinos in another jurisdiction they are most likely not. Kahnawake and Canada as a whole don’t have the strictest privacy regulation and even if they did, it would be unlikely online casinos would adhere to these standards. The reason being that they are not part of the audit program performed for the license.
As your information is not secure it could be sold to anyone. The lack of oversight makes it even more likely as there are no institutions for the player to make a complaint or even reach out to. When personal information is stolen the player will be in the dark and helpless to do anything against it.
Comparing Kahnawake Gambling License to Anjuan and Curacao
While the Kahnawake Gambling License has long been considered a mid-tier gambling license, its position today must be weighed carefully against alternatives like Curacao and the newer Anjouan license. We will compare these licenses below.
Kahnawake vs Curacao Gambling license
The following points are of main importance when comparing the Kahnawake to the Curacao gambling license:
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Oversight: Kahnawake slightly stronger.
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Application process: Both relatively easy.
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Reputation: Kahnawake marginally better.
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Player protection: Minimal for both.
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Enforcement: Kahnawake acts more often.
Although both Kahnawake and Curacao offer licenses with relatively low barriers to entry, Kahnawake is considered marginally more reliable. Hosting requirements and formal complaint procedures exist under Kahnawake but are generally absent or weaker in Curacao. However, neither license offers the robust player protections seen with stronger regulators.
Kahnawake vs Anjouan Gambling license
The following points are of main importance when comparing the Kahnawake to the Anjuan gambling license:
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Regulatory strength: Kahnawake better enforced.
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Recognition: Kahnawake better known.
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Player safety: Kahnawake marginally better.
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Dispute handling: Kahnawake offers a channel.
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Licensing costs: Anjouan cheaper and faster.
Compared to Anjouan, Kahnawake clearly offers stronger but limited regulation. Anjouan licenses are extremely cheap and fast to obtain, attracting riskier operators looking for minimal oversight. Player protection under Anjouan is virtually nonexistent, and dispute resolution is not realistically available. Kahnawake, while far from perfect, provides at least some structure, but is still not considered safe in most jurisdictions.
Safe playing at regulated offer
Want to know for sure that you are playing at a safe and regulated casino for your jurisdiction? Make sure to visit one of the affiliates from QMRA! Our affiliates have undergone strict compliance checks based on their local legislation, making sure they adhere in specific jurisdictions such as Sweden, Brazil and Ontario Canada!
