For an extended period, the status of bookmakers in Canada remained contentious, with a nuanced approach to gambling prevailing. While the existence of such establishments wasn't denied, placing bets was curtailed by stringent laws. The prohibition on gambling, enshrined in the Criminal Code since 1892, fostered an underground industry. As new technologies, notably the Internet, emerged, foreign entities seized the betting market, draining funds from the country and depriving the treasury of tax revenues.
The initial steps towards rectifying this scenario commenced in 1969 with the enactment of an amendment to the Gambling Act. This legislation granted provinces and federal authorities the authority to administer lotteries and oversee gambling activities.
Subsequently, in 1985, local administrations were vested with the power to regulate gambling and lotteries within their jurisdictions.
The pivotal turning point arrived in 1999 when the Criminal Code was suspended, and provinces were conferred with comprehensive jurisdiction over gambling establishments. This shift marked a significant milestone in the evolution of Canada's gambling regulatory framework.
A Trailblazer in Canadian Gambling Regulation
The Kahnawake jurisdiction emerged as a pioneering force in Canadian gambling regulation. Recognising the potential of the gambling industry, the Kahnawake Gaming Commission was established in 1996 under the Kahnawake Gaming Act. Extensive groundwork preceded its establishment, and following the adoption of the 1999 amendment, the Commission swiftly began issuing licenses for the operation of online casinos, betting platforms, and online poker rooms.
The Iroquois community of Kahnawake showcased a remarkable entrepreneurial spirit. Within a short span of time, the Commission transformed Kahnawake into a prominent authority in the global gambling sector. Endowed with the authority to both grant and revoke licenses, the Commission ensures that operators adhere to the standards outlined in the Kahnawake Gaming Act, emphasising the maintenance of high levels of player service and regulatory compliance.
The History of Kahnawake Reservation
Established under the Indian Act passed by the Government of Canada in 1876, Kahnawake stands as one of the urban reservations inhabited by the Mohawk, or Iroquois, people. Situated on the southern bank of the St. Lawrence River, opposite Montreal, this territory spans 50.41 sq. km and is home to over 10 thousand residents. The Mohawks trace their historical territories across what is now known as Quebec, Ontario, and the northeastern United States.
During the Revolutionary War, the Iroquois allied with Great Britain and fought against the United States. Consequently, American literature, such as the novels of Fenimore Cooper, often portrayed the Iroquois as antagonistic, while depicting their Delaware allies in a more favourable light.
Kahnawake operates as a self-governing entity, overseen by the Kahnawake Mohawk Council. This governing body includes the Council of Chiefs, comprising 12 elected representatives led by the paramount chief, Sky Deer. With its own court and police force, the reservation maintains autonomy from external interference.
Renowned for their agility, physical strength, and fearlessness of heights, Mohawk men played a significant role in the construction of major bridges and steel structures across North America. This tradition of steelwork has persisted through six generations, becoming a hallmark of Mohawk identity.
The community's self-sufficiency and a sense of chosenness have propelled Kahnawake to prominence in Canada's gambling industry. The Kahnawake Gaming Commission, established in 1996, emerged as a trusted regulator for online gambling operators, contributing to an improved standard of living for residents. To safeguard against mass migration, stringent regulations limit residency on the reservation solely to indigenous individuals. For instance, mixed marriages may necessitate relocation outside the territory.
The Kahnawake Gaming Commission (KGC) Today
With over 50 online gambling operators holding KGC licenses and offering more than 250 varieties of gambling, the Kahnawake Gaming Commission has established itself as a leading authority in Canada's online gambling industry.
Applicants seeking licenses must meet specific criteria, including the utilisation of high-quality software, undergoing independent audits, ensuring guaranteed payouts, and possessing a strong reputation within relevant circles. The presence of the KGC banner on an operator's website serves as tangible evidence of the company's endorsement by the Commission.
Since 1998, the Commission has overseen the Mohawk Internet Technologies information centre, serving as the operational base for numerous online casinos. Information regarding KGC-licensed operators is readily accessible through this platform.
In addition to issuing licenses, the Commission actively monitors and regulates operator activities to ensure safe and fair gaming experiences. This oversight includes:
· Detecting and preventing suspicious activities to thwart potential fraudulent transactions.
· Safeguarding minors and individuals at risk of gambling-related harm.
· Conducting monthly software checks and tests to ensure compliance with KGC standards.
· Acting as a mediator between users and service providers in cases of complaints, conducting internal investigations and facilitating conflict resolution.
As a result of its comprehensive regulatory framework and proactive approach, the KGC has emerged as a trailblazer in the regulation of Canada's online gambling sector. Its model has been adopted by commissions in other provinces, enabling the sovereign control of the industry and contributing to the replenishment of Canada's treasury.