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Canadian Online Casino Licenses a Grey Area

The United States is not the only country with unclear legislation regarding the online casino industry and the legalities of operating or offering internet gambling services to players. Though the Canadian government recently settled with the Cyber World Group (administrators a top international internet gambling site, Golden Palace.com), the issue is far from settled and has never gone to court. This is just the first of what some are predicting could be an all out battle between the Canadian government and the Kahnawake Mohawk reserve.

The Kahnawake reserve licenses more than 400 online casinos and allows the sites to host their gambling sites through servers on the Kahnawake reserve. The real battle comes down to the technicalities that the Canadian government is pursuing, specifically, that the Canadian Criminal Code outlines that no provincial governments are authorized to license online casinos. But on the other hand, the Kahnawake Mohawks assert their right to continue effectively administering internet gambling licenses because of section 35 of the Canadian Constitution that outlines traditional native rights.

And because the case between the Canadian government and the tribe have not yet been taken to court, the tribe plans to continue administering online casinos licenses. "We don't ask for anything," he said earlier this week. A spokesperson for the tribe remarks, "We tell them that this is our right to do this. And we're doing it properly, we're administering it properly — the world seems to think that we're doing a good job, and we're confident we'll continue to do a good job."

And this is a very valid point – basically, the Kahnawake tribe has administered online casinos licenses for years, and to hundreds of internet gambling sites, and the Canadian government is only now stepping into the situation and claiming that the tribe is in violation of the Criminal Code. A lawyer, Michael Lipton, notes, that the issue has “never been settled in court, and you might say it's a bit of a grey area. So that's where the Kahnawake Mohawks get their strength from, and that's what they're doing."