Native American Licensing Regions: The Kahnawake Territory
The Kahnawake Mohawk territory is a Canadian First Nations reserve of 8,000 people, located just a stone’s throw from Montre off the south shore of the St. Lawrence River. Despite its small geographic area that totals a mere 48.05 square kilometers, most bettors don’t even realize the effects that the Kahnawake territory has on the world of online sports betting.
When Was the Kahnawake Gaming Commission Founded?
Established in 1996, the Kahnawake Gaming Commission is the responsible body for the regulation and handling of all online sports betting matters in the region. Made possible after the Kahnawake Gaming Law legislation was passed, the commission has played an instrumental role in licensing, regulating, and facilitating online sportsbooks from across the globe.
What Rules Do Sportsbooks Have to Comply With?
Before being granted a license, applicants have to follow the regulatory practices pioneered by the Kahnawake region. Many of these are now standard practices across the industry.
The Kahnawake Gaming Commission requires all software to meet strict Control System Submission requirements, continuous compliance with the region’s financial regulators, and accordance with Anti-Money Laundering conditions.
Every transaction on a sportsbook exceeding a value of $10,000 USD must be reported. There are also multiple conduits for sportsbooks to report and investigate any suspect or fraudulent activity. The Kahnawake employs multiple agents to assist them in this process.
The Kahnawake Commission deserves credit for how they have enforced the legal financial operations of all sportsbooks falling within their jurisdiction. The multiple agencies they employ to supervise the legality of sportsbooks’ financial transactions go a long way in ensuring bettors receive prompt payouts.
The Benefits of Sportsbooks in the Kahnawake Region
The Kahnawake region offers access to Mohawk Internet Technologies (MIT), which acts as the primary enticement for sportsbooks which choose to set up shop there. MIT is a local data center hosted within the territory, and it manages nearly all of the sportsbooks within Kahnawake.
MIT provides a considerable amount of bandwidth to sportsbooks, making their services a fast and responsive option for North American sports bettors. This ensures that North American users can host sites that operate much faster than their competitors.
Combined with a low tax rate and unimpeded access to prospective bettors around the world, MIT makes the Kahnawake region extremely appealing for sports bettors.
The Kahnawake Gambling Commission also offers access to a customer dispute center, connecting bettors to the staff of the appropriate sports betting site. This has dramatically improved the efficiency and effectiveness of sportsbooks’ customer service operations.
The Kahnawake Licensing Region Is Always Striving To Better
The Kahnawake Gambling Commission actively tries to improve its practices, often collaborating with other regulatory bodies within the online sports betting landscape. In 2005, the Commission entered into an agreement with the Financial Services Regulatory Commission of Antigua and Barbuda, through a memorandum of understanding. They made a similar pact of cooperation with the Lotteries and Gaming Authority of Malta in 2006.
Interested in learning more about how sportsbooks operate, and where they’re licensed from? Check out the rest of our guide to sports betting legality.