How to Start a Gambling Company in Kahnawake
Kahnawake is a popular jurisdiction for online gambling businesses because of its strong regulatory framework, international reputation, and cost-effective licensing process. Below is a step-by-step guide to launching an online gambling company in this attractive jurisdiction.
Step 1: Decide on Your Business Model
Before applying for a license, you must determine the type of gambling business you want to operate. It can be an online casino with slot games and table games, a sports betting platform, or a live dealer casino with real-time streaming with human dealers. You can be a casino software provider developing and licensing casino games. Your choice will determine which license you need from the KGC.
Step 2: Choice The Right Type of Kahnawake Gambling License
Different types of licenses from Kahnawake are suited for specific gambling activities.
The Kahnawake Gaming Commission offers different licenses, each suited for specific gambling activities. Depending on your business model, you will need one of them. For example, you need a Client Provider Authorization if you develop online casinos, poker sites, and sportsbooks. Companies that develop and license gambling software must obtain Casino Software Provider Authorization, and businesses running live dealer casino studios need to get Live Dealer Studio Authorization.
Step 3: Host Your Gambling Platform with Mohawk Internet Technologies (MIT)
All gambling companies operating under Kahnawake’s jurisdiction must host their gaming servers at Mohawk Internet Technologies (MIT). Their servers must be located in MIT’s facility in Kahnawake. Operators must comply with KGC’s technical and security standards to access MIT.
Step 4: Apply for the Kahnawake Gaming License
Once you have chosen the proper license, you must complete the application process, which typically takes 6 months.
Step 5: Implement Responsible Gaming and Security Measures
Passing regular KGC audits regularly is non-negotiable when the regulator ensures gaming operators meet these requirements.
Step 6: Launch the Gambling Platform and Accept Players
Once you obtain a license from Kahnawake, set up your business's servers at MIT, and implement security measures, you can finally launch your online platform and start accepting players, offering casino games or sports betting, or serving other online gambling platforms.
If you have any questions
If you have any questions
How To Renew the Kahnawake Gambling License
To continue operating under the Kahnawake Gaming Commission, license holders must renew their licenses every five years. This includes submitting an application and paying a $5,000 renewal fee for Client Provider Authorization, Casino Software Provider Authorization, or Live Dealer Studio Authorization. This fee is separate from the annual licensing fee, which must be paid yearly.
License holders must send the renewal application to the KGC at least three months before the license expires. If the application is late, the permit may expire, and the operator may need to reapply from the beginning. During renewal, the KGC reviews the operator’s compliance history, including financial stability, player complaints, and adherence to security and fairness rules. If there are serious violations, the KGC may deny the renewal request.
If approved, the license is renewed for another five years, allowing the operator to continue gaming. If denied, the KGC provides a written explanation. Failing to renew on time could lead to suspension or termination, preventing the operator from operating under Kahnawake’s jurisdiction.
Costs and fees of the Kahnawake Gambling License
Kahnawake is known for its tax-friendly structure, offering significant financial advantages to online gambling operators. A license in Kahnawake has a 0% corporate tax and no additional gaming tax. This enables startups and smaller businesses to grow without the burden of high taxation. Nevertheless, with a fee increasing to 14% in October 2023, licensing costs are still affordable compared to other international licenses.
The Kahnawake Gaming Commission has set specific fees for applying for, renewing, and maintaining licenses for online gaming operations. These fees cover Client Provider Authorizations, Casino Software Provider Authorizations, Live Dealer Studio Authorizations, and Key Person Permits.
Application Fees (One-Time Fees)
These fees are required when first applying for authorization to operate in Kahnawake:
• Client Provider Authorization: $40,000 (USD)
• Casino Software Provider Authorization: $40,000 (USD)
• Live Dealer Studio Authorization: $30,000 (USD)
• Additional Key Person Permit: $5,000 (USD)
One Key Person Permit is included in the initial application fee for the main authorizations.
Annual Fees (Recurring Fees)
These fees must be paid every year to maintain an active license:
• Client Provider Authorization: $20,000 (USD)
• Casino Software Provider Authorization: $20,000 (USD)
• Live Dealer Studio Authorization: $10,000 (USD)
• Key Person Permit: $1,000 (USD)
Casino Software Providers must also pay an additional $3,000 per year for each third-party gaming operator listed under their authorization.
Renewal Application Fees (Every 5 Years)
Every five years, operators must submit a Renewal Application to continue operations. These fees apply in addition to the annual fee:
• Client Provider Authorization Renewal: $5,000 (USD)
• Casino Software Provider Authorization Renewal: $5,000 (USD)
• Live Dealer Studio Authorization Renewal: $5,000 (USD)
The renewal application fee includes one Key Person Permit.
If fees are not paid on time, a penalty of 10% per year is applied. The penalty is calculated daily until the overdue amount is fully paid.
The licensing fee is transparent, with no hidden gaming taxes or unexpected financial obligations. Licensees are only required to pay the application fee, annual license renewal fees, and hosting costs through Mohawk Internet Technologies (MIT). Specific hosting costs through MIT are not publicly disclosed.
The Kahnawake Gambling Commission does not impose specific regulations on cryptocurrencies, allowing operators to use crypto for deposits and withdrawals or even develop crypto-based platforms. By offering global accessibility, this approach helps operators connect with players in regions where traditional banking is restricted. While there are no specific rules for crypto transactions, operators must comply with AML and KYC requirements. Additionally, they must ensure transparent transactions and strong security to prevent the misuse of cryptocurrencies for illegal activities.
Kahnawake Gaming License Taxes
Kahnawake is known for its tax-friendly structure, offering significant financial advantages to online gambling operators. A license in Kahnawake has a 0% corporate tax and no additional gaming tax. This enables startups and smaller businesses to grow without the burden of high taxation.
Overview of the Kahnawake Gambling License
Located in Quebec, Canada, Kahnawake is a self-governing Mohawk territory with its own set of laws and regulations. Despite being a relatively small Indigenous community, Kahnawake has played a significant role in the online gaming industry since 1982.
The Constitution Act of 1982 confirmed Kahnawake’s right to regulate gaming. In 1996, the Kahnawake Gaming Commission (KGC) was established to oversee land-based casino licensing and compliance. In 1999, Kahnawake introduced the Interactive Gaming Regulations, expanding its oversight to online gambling.
Today, a Kahnawake license covers various iGaming businesses, including online casinos, poker websites, sports betting, online lotteries, eSports betting, and cryptocurrency gambling.
Unlike many jurisdictions that struggle with bureaucracy, Kahnawake offers a business-friendly environment for gaming operators. Obtaining a license here is faster and easier than in many other regions. In addition, Kahnawake does not impose a tax on gaming revenue or corporate income.
Over the years, Kahnawake has built a solid reputation, allowing companies licensed here to operate worldwide and reach a global audience.
Types of licenses for Gambling in Kahnawake
The Kahnawake license is designed to support both B2B and B2C businesses in the industry. Here's a breakdown of the options within each category:
Licenses for B2C Operators
Client Provider Authorization (CPA)
The CPA is for operators offering services like online casinos, poker rooms, sportsbooks, and other iGaming activities. This authorization is required for any company that wants to operate an online casino, poker, or sportsbook, offer interactive gaming services to players, and run gambling software and payment processing for an online gaming business. A Client Provider Authorization allows operators to provide gaming services globally, but a CPA is not a stand-alone license. It must be linked to an Interactive Gaming License (IGL) exclusively held by Mohawk Internet Technologies (MIT). Operators are required to host their gaming operations on MIT servers in Kahnawake. To obtain a CPA, a company must test all games for randomness and fairness, have age verification to prevent underage gambling, follow AML regulations, and keep accurate financial records.
Live Dealer Studio Authorization (LDSA)
The LDSA is for companies operating live dealer casino studios. Any company providing live dealer gaming services as part of an online gambling operation must obtain this authorization. This includes dedicated live studios streaming live games and third-party providers offering live dealer games to other online casinos. An LDSA is required for businesses offering real-time, interactive casino games such as live blackjack, roulette, and baccarat, where human dealers operate the games in a studio setting, and players participate online.
To obtain a live dealer studio authorization, the studio must be physically located in Kahnawake. The facility must have high-quality cameras and audio systems to ensure clear game streaming. All live dealers must be adequately trained and meet minimum age requirements. In addition, a supervisor must always be on-site to oversee operations.
Licenses for B2B Operators
Interactive Gaming Licence (IGL)
The IGL is designed for hosting facilities like data centers and is not intended for individual gambling operators. The KGC exclusively grants to Mohawk Internet Technologies (MIT), a hosting company based in Kahnawake. MIT provides servers and technical support for online gambling businesses and ensures compliance with the KGC’s regulations. Gaming operators looking to run an online gambling business under KGC regulations must obtain one of the following authorizations: Client Provider Authorization (CPA), Casino Software Provider Authorization (CSPA), or Live Dealer Studio Authorization (LDSA). Once authorized, they must host their gaming operations with Mohawk Internet Technologies (MIT), the exclusive Interactive Gaming License (IGL) holder.
Casino Software Provider Authorisation (CSPA)
The CSPA is designed for companies that develop and supply software and platforms for online casinos. Unlike a Client Provider Authorization (CPA), which allows a company to run an online casino or sportsbook, this license is designed for businesses that create, license, and distribute casino gaming software but do not directly offer gambling services to players. For example, if a company develops slot games for other gambling sites or runs a platform that helps casinos manage their operations, they’ll need a CSPA. Thus, the CSPA operates gaming equipment hosted by an IGL holder.
A Casino Software Provider Authorization is required for companies involved in developing and distributing online casino software. This includes businesses that:
• Develop and sell slot machines, table games, poker platforms, and virtual sports.
• License gaming software to third-party online gambling operators.
• Create Random Number Generators (RNGs) for online casino games.
• Provide casino software as a service to licensed gaming businesses.
The requirements for obtaining this authorization are similar to those for a Client Provider Authorization.
Additional License Types
Key Person Licence (KPL)
KPL is required for individuals holding key positions in a company that holds a Client Provider Authorization (CPA), Casino Software Provider Authorization (CSPA), or Live Dealer Studio Authorization (LDSA). This includes CEOs, CFOs, CTOs, Compliance Officers, IT and Security Officers. A KPL ensures that key to perform their roles in a KGC-licensed company legally. A KPL ensures that key individuals are qualified, trustworthy, and suitable to operate within Kahnawake’s regulatory framework. It also helps the KGC monitor and regulate gaming activities to prevent fraud, money laundering, and unethical practices. Applicants must undergo background checks, financial reviews, and ongoing compliance monitoring to obtain this permit. The license is valid for one year and must be renewed annually.
Interjurisdictional Authorizations (IJA)
The IJA is a special permit offered to operators with a valid gaming license, such as an IGL or from another jurisdiction, who wish to relocate or operate part of their business in Kahnawake. An IJA allows a gaming operator or software provider to conduct online gambling operations across multiple jurisdictions. Interjurisdictional Authorizations ensure that operators comply with both Kahnawake’s regulations and the laws of the other gaming jurisdictions.
An IJA is required for any gambling operator who holds a valid gaming license, wants to run online gambling operations in multiple jurisdictions, plans to use Kahnawake’s regulatory framework to enhance credibility and player trust, and operates casino software or gaming platforms that serve international customers under different licenses. However, this permit does not replace an existing gaming license; it is an additional approval allowing companies to extend their operations to Kahnawake legally.
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If you have any questions
If you have any questions
Challenges and Limitations of Kahnawake License
While the Kahnawake license is globally recognized, some markets restrict or prohibit its use. Restricted markets include the following:
• North America: The United States, and in Canada, the province of Ontario.
• Europe: United Kingdom (UK), Germany, Italy, France, Spain, Netherlands, Sweden, and Russia.
• Australia (not recommended).
• Middle East: Iran, Iraq, Yemen, and Oman.
Here are markets where the Kahnawake Gambling license is accepted:
• Latin America: Mexico, Colombia.
• Africa: Kenya and Nigeria.
• Asia: Indonesia, Malaysia, and the Philippines.
• North America: Canada (Saskatchewan, New Brunswick, Newfoundland, Nova Scotia, Yukon, Nunavut, Northwest Territories).
And other countries
It’s important to note that regulations often change, so the list of countries accepting the license may also change over time.
Another challenge for operators is the technical requirement to host servers at Mohawk Internet Technologies.
Gaming servers must be hosted at MIT in the Mohawk Territory of Kahnawake. This rule limits flexibility for operators with servers in other locations or those needing infrastructure closer to their target markets.
Server costs vary based on operation volume, ranging from $200 to $1,500 per month.
What is Mohawk Internet Technologies in Kahnawake
Mohawk Internet Technologies (MIT) is the exclusive official holder of the Interactive Gaming Licence (IGL) issued by the Kahnawake Gaming Commission. Since 1999, MIT has operated a secure data center in Kahnawake, where all KGC-licensed gaming operators must host their websites and servers. Being a hosting hub, MIT ensures that online gambling businesses meet security and fairness standards the regulatory body sets.
Gambling Regulations in Kahnawake
The only regulatory authority in the jurisdiction is the Kahnawake Gaming Commission (KGC), overseeing all interactive gaming activities within the Mohawk Territory of Kahnawàke. Established in July 1999, the KGC is authorized to regulate online gambling in the following ways:
• Establish a legal framework to control online gambling.
• Ensure online gambling is fair, honest, and safe.
• Prevent any association between online gaming and illegal activities.
• Guarantee fair treatment of players, prompt delivery of winnings, and keep their personal information private.
• Protect individuals under eighteen (18) and other vulnerable individuals.
The KGC oversees two categories of licenses: those for online gambling and others for land-based casinos.
To legally operate interactive gaming in Kahnawake, businesses must obtain a license or authorization from the KGC because the regulatory body has kept the application process and licensing regulations the same. Any company that wants to obtain a permit from Kahnawake must prove that it is trustworthy, has enough money to run its business, and will follow the gaming fairness standards to get a license. Licenses are valid for a maximum of five years and must be renewed following KGC procedures.
Besides overseeing the licensing process, the KGC checks gambling businesses regularly to ensure they follow the rules. The regulatory body conducts audits and inspections to ensure that games are fair and operators comply with regulations. It also enforces AML standards to prevent gambling from being used for illegal financial activities. Operators must keep records of transactions, including bets, winnings, deposits, and withdrawals. They must also maintain financial statements to prove financial stability and implement security measures to protect player accounts and prevent fraud. These records must be kept for at least five years to support the audit process and ensure regulatory compliance.
What is Mohawk Internet Technologies in Kahnawake
Mohawk Internet Technologies (MIT) is the exclusive official holder of the Interactive Gaming Licence (IGL) issued by the Kahnawake Gaming Commission. Since 1999, MIT has operated a secure data center in Kahnawake, where all KGC-licensed gaming operators must host their websites and servers. Being a hosting hub, MIT ensures that online gambling businesses meet security and fairness standards the regulatory body sets.
Recommendations For Operators
The Kahnawake license offers affordable licensing and renewal fees. It allows operators to target players in emerging markets, such as Latin America, Asia, and Africa. The licensing process is quick, taking about 2-4 months, and the license has a strong global reputation.
However, for startups, the Kahnawake license might be expensive compared to cheaper alternatives, such as the Anjouan license. Additionally, operators have technical limitations that prevent operators from hosting with other partners.
Here’s what we recommend:
• Avoid applying alone, as minor mistakes can lead to rejection.
• Gain some experience in the gambling industry to understand its operations and requirements better.
• Limit the number of Ultimate Beneficial Owners (UBOs) to three or fewer to avoid paperwork complications.
• Remember that obtaining a license can often take longer than you think.
• Many payment providers require proof of licensing for integration, so they can only be set up after your license is approved. For providers requiring a bank account, you must first secure the license to open an account and activate their services.
