The Kanawake Territory is a small community located in the Canadian city of Quebec. Kanawake was one of the first jurisdictions in the world to see the potential of the online gambling industry and appreciate it as an opportunity-filled industry, which prompted the development of gambling regulation.

The first rules for organizing gambling activities were adopted in 1999 by the official licensing and regulatory body, the Kanawake Gambling Commission. Since then, the Commission has guaranteed the responsible and fair conduct of the gambling business and ensured that gambling is conducted only legally.

The Commission issues the following types of licenses:

Interactive Gaming Licence (IGL).

This license allows the owner to operate a data center and provide Internet services to operators with a basic CPA license. The Commission can only issue one single IGL license – since 1999 its exclusive holder has been Mohawk Internet Technologies (MIT)

Client Provider Authorizations (CPA).

The license allows the operator to organize gambling games using the IGL owner’s data center servers located in Kanawake. CPA license holders are also called Client Provider Authorizations. This license is what the casino and betting operator needs.

Casino Software Provider Authorizations (CSPA)

CSPA license allows the company receiving it to host servers in the IGL owner’s data center and provide casino software to operators. This license does not give the right to offer gambling directly to users.

Live Dealer Studio Authorizations (LDSA)

This type of license allows the Kanawake territory studios to broadcast live dealer games and organize their work.

Inter-Jurisdictional Authorizations (IJA)

This is a license for an organization that has a license similar to IGL but from another jurisdiction, but wants to locate some of its facilities, all of its equipment and/or personnel in the Kanawake area.

Key Person Permits

There are two types of so-called key persons – they work for an IGL or CPA license holder to perform key management or operational functions.

Each operator with a CPA license must designate at least one key person to perform management functions on its behalf. The operator must obtain authorization for a key person in addition to the CPA license.

Key facts about Client Provider Authorization

  • The Client Provider Authorization license is valid for five years.
  • The license covers all markets except the United States.
  • The corporate tax rate in the jurisdiction is 0% and there is no additional tax on gambling.
  • Can be obtained for a company registered in any jurisdiction.
  • No fee for domain names, there can be any number of them.

CPA license fee table

Title Amount Payment frequency
CPA license application fee*

(1 Key Person Permit already included)

40 000 USD 1 time per submission
Additional Key person permit (1 key person) 5 000 USD 1 time per submission
CPA license fee 20 000 USD Annually (from the second year)
Key person permit (1 key person) 1 000 USD Annually (from the second year)
Fee for submitting an application for license renewal 5 000 USD Every 5 years
Application fee for Key person permit (1 key person) 2  500 USD Every 5 years

* In case of refusal on the part of the Commission, the amount of 20,000 USD minus additional expenses on the part of the Commission is refunded.

 

Procedure for obtaining a Kanawake license

1

Appointment of a key person

2

Preparing a package of documents

3

Submitting an application and payment of the registration fee

4

Waiting for a decision

(four to eight weeks)

Important: The consideration of the application begins only after the Commission receives the full payment. The Commission does not accept payments in cryptocurrency.

After consideration of the application by the Commission, the operator may face three possible outcomes:

  • Approval of the application and issuance of a license;
  • Rejection of the application;
  • Return of the application to the operator with a request for additional information.

In case all documents are approved and the application is granted, the license will be issued only for six months.

Thereafter, at least thirty days prior to the expiration of the initial six-month period, the Commission will evaluate the operator’s performance and decide whether it has satisfactorily completed the continuing regulatory compliance process.

The Commission will examine whether there have been an excessive number of complaints from players or other third parties, whether the operator has violated the rules or any laws, and whether the operator has committed any other act or omission that may have adversely affected the reputation of the Commission.

Based on all issues considered, the Commission will decide whether to extend the license for a period of five years, to stop the license, or to extend it for another three months for a re-inspection.

Important: The servers or part of the servers must be located in Kanawake territory.

List of required documents to apply for a license

Completed CPA license application
Form with information about the applicant's legal entity
Form with information about individual applicants (to be filled out for each director, shareholder, and key person)
Completed application for each key person
Completed checklist

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