Tuesday February 10,2015 : KEEPING ONLINE GAMBLING INTERNATIONAL
The growing number of nationally restricted licensing jurisdictions poses interesting questions on the future of independent licensing entities….here's how one such body is approaching the problem.
The growing number of nationally restrictive licensing jurisdictions, especially in Europe, presents online gambling operators who are internationally oriented by the very nature of the internet with difficulties related to licensing and duplicative costs.
While the trend towards government-mandated licensing regimes in individual countries may appear to threaten the business of independent jurisdictions that have developed in places like Malta, the Isle of Man, Antigua and Alderney, it has also served as a spur to innovation and cooperation.
One of the longest established and well-known of these global licensing entities is the Kahnawake Gaming Commission, located on First Nation land close to Montreal in Canada, which points out that many – if not most – operators want to carry on business from more than one jurisdiction, but are reluctant to duplicate lengthy licensing processes with high attendant costs.
The KGC's response to this reality is the creation of a new licensing category it titles "Inter-Jurisdictional Authorisation".
Operators seeking such an extension of their licensing from a recognised authority must provide proof to the Commission that they are bona fide licensees from a primary jurisdiction that regulates and licenses online gambling and has subjected the applicant to professional inspection and assessment.
Because the Commission recognises that operators have already met acceptable standards demanded by the primary jurisidiction, it does not needlessly duplicate these requirements, saving operators both time and money.
A KGC spokesperson says that a one-time application fee of $2,000 is required from the operator. together with an annual licensing fee of $10,000. There are no other fees, taxes or costs payable, and the average turnaround time from application to issue of an inter-jurisdictional licence is just on two weeks.
The Kahnawake licence extension remains valid for as long as the annual fees are paid and throughout the duration of the operator's original licence with the primary jurisdiction.
Operators taking advantage of the scheme are entitled to host all or part of their activity in the Kahnawake Mohawk lands close to Montreal in Canada , where sophisticated hosting and technological services are available.
The KGC points out that the primary licensing jurisdiction remains principally responsible for regulating the activities of the operator, and the Commission does not duplicate the original regulator's role in compliance requirements.
Further, unless a complaint relates directly to the hosting services provided under the KGC offer, the Commission will not entertain the use of its respected dispute resolution services by players with a complaint against an operator, who should be referred to the primary jurisdiction.