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Golden Palace Pays

Without even taking the case to court, owners of Golden Palace Casino agreed to pay a $2 million fine for illegally engaging in internet gambling activities. The Canadian government is apparently beginning to cut down on the online casinos that are licensed by and operating from the Kahnawake Mohawk reserve, even though tribe contends that it is still entirely within the tribal rights for the Kahnawake tribe to administer and license online casino sites.

The Cyber World Group administers the online casino site, Golden Palace.com, and rather than fight the charges and draw out the dispute, the internet gambling company pleaded guilty to the charges and was then fined $2 million. Golden Palace is easily one of the top online casinos in the global internet gambling community, and many smaller internet gambling companies that are also registered through the Kahnawake reserve are concerned that the government might pursue some of the smaller sites next.

More than likely, the online casino company decided to just settle on a guilty plea as a way to end the avoid drawing out the issue any more than is necessary. Golden Palace operated out of offices in Montreal last year, and the government’s investigation into the site led to a raid on Golden Palace’s offices.

The crux of the issue really lies in whether or not the Kahnawake reserve is able to license online casinos, or if the sites have to go through the provincial government as is outlined in the Canadian Criminal Code. Choosing not to go to trial may have been a cost effective, or face saving measure for the online casino, but in the long run, the online casino site has just prolonged the real issue between the tribe and the government which might just stay as is until the issue makes it to court.