Just How Legal is Kahnawake?

Both the Canadian and Quebec governments dispute the legality of Kahnawake's gambling operations, but have not risked taking action against them. The websites hosted within Kahnawake are the only privately owned gambling sites that have operated in continental North America without legal action being taken against them.

Determined to regulate
In the Weekly Edition we have reported that a Liberal MP, Roy Cullen, wants the Ottawa government to regulate the Kahnawake First Nation's virtual gambling activities. Kahnawake is synonymous with the billion dollar online gambling industry. Cullen met with Justice Minister Rob Nicholson to talk about the online gambling issue.

If no action is taken, he vows to introduce a private member's bill so that the issue will be debated and dealt with in Parliament. "I think something is going to happen. My preference would be to open it up and regulate it," says Cullen. But what if it goes the other way and the vote goes to close it down?

Economic potential
Chuck Barnett, a member of the board of supervisors for Mohawk Internet Technologies, a utility company that provides connectivity services for the site owners at Kahnawake, sees Ottawa as a foreign government that has no business regulating activity on Mohawk territory. "If I were a Canadian, I might instead be more interested in how explicit legislation could serve as the catalyst for a potential source of economic development, employment and revenue through taxation," he said. "The Commission has turned away more than 100 applicants looking to set up online gambling enterprises."

"We could make a lot more money if we opened the door to everyone. It's a revenue-generating industry, but dignity and honor and respect mean something at the same time," says Barnett, who is annoyed that the legality issue continues to rear its head today even though they've successfully been in operation for 10 years. The Kahnawakes license some of the most prominent brands in the business including Bodog Life and Ultimate Bet.

For the sake of gambling
It is not clear if it will be to the benefit or detriment of the Kahnawake if their gambling activities are legalized. But maintaining the high standards they have set will definitely benefit online gamblers.