Over the last few years, the Kahnawake licence for casinos – both brick and mortar and online – has become one of the most sought-after licences in the world.
Over the last few years, the Kahnawake licence for casinos – both brick and mortar and online – has become one of the most sought-after licences in the world. The Kahnawake licence is ideal for start-ups that are just launching and also provides an excellent licensing system for large casino firms that are trying to take their first steps into the Canadian market.
If you have ever wondered why so many companies are scrambling to get their hands on a Kahnawake licence, keep reading. We spoke to Adam Nadeau, founder of casino review site Playcasinos.ca, who explained the reasons why these licences are sought after in the industry.
The meteoric rise of the online gambling industry
“The online gambling industry enjoyed fairly humble beginnings. The very first digital gambling games were extremely rudimentary, blurry and difficult to play. However, 27 years later and there are hundreds of different online casinos on the market around the world, all of which feature game libraries with a multitude of different game titles,” says Adam, who founded Playcasinos.ca when he was still in college.
“The rise of the online gambling industry has in part been due to the increase in digital technology. There is now technology to support secure, high-speed, high-performance platforms which feature thousands of different games and host a series of different languages, operations and payment processors. It is even more impressive that so many online casinos have managed to successfully transition to the world of mobile and fully optimize their platforms for mobile use.”
“These days the industry is so advanced that companies are vying for the attention of potential customers through the use of welcome bonuses, promotions and VIP packages. The increasing popularity of online gambling indicates that the industry will continue to grow and expand in the years to come.”
Speed and efficiency is the name of the game
So, why are Kahnawake licences so sought after?
“One of the primary draws for many casino companies is the fact that the Kahnawake licensing body is extremely fast and efficient,” Adam explains. “They are not quite as fast as Curacao, but the licencing is still processed much more quickly with Kahnawake than with most alternate licencing bodies.”
“The application process will typically take between four and eight weeks depending on the time of year and the number of applications currently being processed. If the company has everything in order and all of their ducks in a row, the approval process itself can take an additional four to eight weeks. This makes Kahnawake one of the fastest licencing bodies in the world. It should be noted however that companies that do not have all of the required documentation will likely experience delays.”
Adam adds that the online casino industry is continually changing, and new casino platforms are launched almost daily. “This fast pace means that it is a race to the top and delays matter.”
Fees and taxes
The low fees and taxes associated with the licensing process at Kahnawake are another reason why they have become so popular in the online casino industry. “Application fees and associated costs for getting an online casino licenced by Kahnawake are some of the lowest in the entire industry,” says Adam.
“Curacao has lower fees but Kahnawake has extremely affordable rates, especially compared with the fees of some European licencing bodies such as Malta or the UK. No gambling licence is going to be free, but the fees are affordable. The savings can then be used to build the platform or attract further investment in the product.”
“What the low fees mean is that smaller companies, start-ups and sole traders are more likely to seek a licence. Together with the hyper-efficient processing times, the low fees make Kahnawake an extremely attractive option for small and innovative companies that are just starting out on their own.”
As for the taxes, casinos that seek out a licence from the Kahnawake Gaming Commission can enjoy the extremely low tax rate of 0% gaming tax on all gaming revenues. “This is very rare in the industry and is obviously ideal for new companies and small start-ups which want to focus on building their brand and reinvesting what they have.”
Flexibility
Another, often overlooked reason why the Kahnawake licence is superior to many others is its inherent flexibility. “In other jurisdictions, a single casino company may need to acquire a series of different licences in order to launch and operate several different platforms or sites. Other jurisdictions even have some game-specific requirements when it comes to licencing.”
Reputation: It’s all in a name
While the low fees and fast processing speeds are certainly attractive aspects, the primary reason why licences from the Kahnawake Gaming Commission are so popular is because of the Commission’s reputation. The jurisdiction of Kahnawake has a reputation for being trustworthy, responsible and fair.
“The Kahnawake authorities take rules and regulations extremely series and will enforce said rules without question,” Adam says. “On top of that, complaints are taken very seriously as are cited violations of the regulations. Not only does the Commission grant licences, but it also continually monitors the licence holders so that customers of the licenced casinos can rest assured.”
“Casinos seek out licences in order to operate in a certain region, but they are also aware that licences convey trust, respectability and security to potential players. On top of that, casinos are also aware that by obtaining a licence from the Kahnawake Gaming Commission, they join the ranks of online casinos such as Golden Tiger, Quatro Casino, CanPlay and Grand Mondial. For online casinos, it always helps to be in good company.”
“These are just a few of the many reasons why casino companies both big and small are focusing on the Kahnawake Gaming Commission as the first port of call when it comes to licencing their online casinos. The online gambling industry is continually changing, innovating, growing and adapting, so you never quite know what will happen next. That being said, it is safe to say that the Kahnawake Gaming Commission’s casino licences have a number of essential attributes which all casino companies will find attractive.”
