Table of contents
The Kahnawake license is widely recognized as one of the most trusted international options for online gambling operators.
More than 40 gaming operators, running over 210 platforms, currently hold the Kahnwake Gaming License.
Its popularity can be attributed to several factors. The KGC has proven to be stable and reliable over the years. The license guarantees fair games, secure payments, and players’ protection. Secondly, it offers 0% tax on profits and a while-label solution.
Even so, there are some hidden challenges to consider before applying for the license.
Overview of the Kahnawake Gaming License
This license applies to iGaming businesses such as online casinos, poker websites, sports betting, online lotteries, eSports betting, and cryptocurrency gambling.
It is issued by the Kahnawake Gaming Commission (KGC), a regulatory body based in the sovereign Kahnawake Mohawk Territory, which is a First Nations Reserve located in Quebec, Canada.
As a self-governing territory, Kahnawake creates its own gaming laws independently of Canada. It was the first jurisdiction to begin regulating online gambling, starting in 1996.
The KGC is authorised to regulate online gambling in the following ways:
- Establish a legal framework for overseeing interactive gaming.
- Ensure the responsible, equitable, and ethical conduct of interactive gaming.
- Prevent any association between online gaming and illegal activities.
- Guarantee fair treatment of players, prompt delivery of winnings, and strict confidentiality of player information.
- 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.
Focusing on iGaming, we'll only look at the types of licenses that work for services in this field.
Types of Licenses Issued by KGС
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 Authorisation (CPA)
The CPA is for operators offering services like online casinos, poker rooms, sportsbooks, or other types of iGaming. As with an IGL, operators must host their platform through MIT (explained below).
- Live Dealer Studio Authorisation (LDSA)
The LDSA is designed for companies operating live dealer casino studios. Any company providing live dealer gaming services as part of an online gambling operation needs an LDSA. This includes dedicated live studios streaming live games and third-party providers offering live dealer games to other online casinos.
Licenses for B2B Operators
- Interactive Gaming Licence (IGL)
The IGL is for hosting facilities, such as 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, technical support for online gambling businesses, and ensures compliance with the KGC’s regulations.
- Casino Software Provider Authorisation (CSPA)
The CSPA is for companies that develop and supply software and platforms for online casinos. 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.
Additional License Types
- Key Person Licence (KPL)
KPL is for Executive Officers, such as CEOs and CFOs, Compliance Officers, IT and Security Officers, and other key roles with significant influence over the management of a platform.
- Interjurisdictional Authorisations (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.
Table 1. Kahnawake license fees and cost (agent’s fees excluded)
Description: This table shows the costs of different licenses offered by the KGC. Source
It’s important to note that for the IGL, no price is shown because this license is issued exclusively to one specific company, and its cost isn’t publicly disclosed. For the IJA, the cost depends on various factors, such as the operator's other licenses, type of activity, and operational scale. For exact prices, we recommend contacting us.
Benefits of the License
The Kahnawake gaming licence is internationally respected and offers key benefits for iGaming operators, including:
Cost-Effectiveness
The application costs are lower compared to the Curacao Gaming license and other European licences, with renewal costs ranging from $10,000 to $20,000 starting in the second year.
0% Tax Policy
Operators don’t pay corporate taxes on their gaming revenue within Kahnawake. The only costs operators face are the application fees and annual licensing fees outlined by the KGC.
Global Reach
A license allows operators to host iGaming platforms and accept players worldwide. Unlike Curacao, operators don’t need a local company or to run their business within Kahnawake.
It’s recommended to open a company in regions, like Costa Rica, Belize, or other locations where online gambling is recognized as a business activity. In Belize, for example, you can start a company with nothing more than a passport, a utility bill, and about 2-3 days of waiting.
Strong Regulatory Framework
To get and keep a license, operators must meet strict rules. They must prove financial stability, share detailed information about their business, games, and software, and pass background checks. The system is focused on ensuring that players are treated fairly.
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Kahnawake gaming license Application process
This includes five main steps:
- Company registration: Establish a company in any jurisdiction you prefer.
- Compliance: Collect the required documents, pay the necessary fees, and meet the KGC’s qualifications.
- Submission: Fill out and submit the application form on the KGC’s website.
- Regulatory Review: The KGC evaluates your application by conducting background checks, assessing your business’s stability, and reviewing your gaming platform’s security.
- Provisional License: Following approval, you can begin operating under guidance while undergoing an audit.
- Full License Issuance: After meeting all requirements, the KGC issues the full license.
For now, let’s dive into a step-by-step breakdown of the application process:
Step 1. Pre-Application Preparation
Expected timeline: 1 month.
The official website of the KGC has a list of required application documents for each license type.
In our experience, preparing the required documents usually takes about a month, but sometimes it can take longer. For example, obtaining a no-criminal-record statement can be a slow process in some countries.
Applicants must pay the $40,000 license fee before the application is processed. The key person license fee is $5,000 for each key person.
For example, if you apply for a license with 3 managers, you pay:
- $40,000: License fee (includes investigations and first-year licensing);
- $5,000 * 3: Key Person License for 3 managers (totally $10,000 because the first one is included in the license).
Total fee: $50,000.
Step 2. Application Phase
At this step, fill out the application form on the KGC website.
Step 3. The KGC Initial Review
Expected timeline: 1-2 months, depending on the regulator’s response time.
At this stage, the KGC conducts a detailed investigation, which includes:
- Background checks on key staff and directors.
- Verification of the company’s business and financial stability.
- A review of the gaming platform’s fairness and security.
The application is reviewed at the next KGC meeting.
There are two options: If approved, you move to the next step. If denied, the KGC refunds the first-year fee (but not the due diligence cost).
Step 4. Preliminary 6-Month Permit
After the KGC decision, the applicant gets a 6-month provisional license to start operations under the following conditions:
- The license holder must display the KGC logo on their website.
- A verification link (an HTML code) must be added to the website to verify the license status.
- The operator receives a contact sheet and access to tools for responsible gaming, such as a Self-Exclusion Player List.
Plus, operators must host their gaming servers in the Kahnawake jurisdiction, specifically at the MIT data center.
An approved agent conducts an audit of your gaming operations during this step. This audit ensures that a platform is secure, fair, and meets the regulator’s standards.
Step 5. Full License Issuance
After the audit and review are completed, and all conditions are met, the KGC issues the full gaming license.
The entire licensing procedure usually takes about 6 months. Keep in mind that this is just an estimate. The timeframe may vary for each case.
Challenges and Limitations
While the Kahnawake Gaming license is globally recognized, some markets restrict or prohibit its use. Restricted markets include the following:
- North America: 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 Gaming 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.
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.
Managing these requirements can be tricky, so it's best to rely on expert guidance. Book a free consultation for professional assistance to avoid mistakes that might delay or cost you the license.
Challenges and Limitations
While the Kahnawake Gaming license is globally recognized, some markets restrict or prohibit its use. Restricted markets include the following:
- North America: 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 Gaming 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.
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.
Managing these requirements can be tricky, so it's best to rely on expert guidance. Book a free consultation for professional assistance to avoid mistakes that might delay or cost you the license.
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