Canadians to target Kahnawake

[jetset]

http://www.nationalpost.com:80/news/...html?id=353519

OTTAWA - The federal government said yesterday it is considering new measures to stamp out Internet gaming sites based on a native reserve in Quebec, in a move that could spark conflict between Ottawa and Canada's First Nations ahead of a second national "day of action" this summer.

The government deems the 400 or so poker and sports-betting sites operating from the Kahnawake reserve near Montreal to be illegal, but neither federal not provincial governments have attempted to enforce the law. Now Ottawa is reviewing that position.

"Following recent concerns surrounding Internet gambling in Canada, the Minister of Justice [Rob Nicholson] has asked his officials to examine whether the enforcement of the Criminal Code provisions could be assisted with other measures," said Genevieve Breton, Mr. Nicholson's director of communications.

The "other measures" are understood to be moves to restrict banks and credit card companies from conducting financial transactions with illegal Internet operators. Similar legislation was enacted in the United States two years ago......

[maxd]

Speaking as an ex-pat Canadian I can assure you that this kind of thing is a ritual in Canada. The tug of war between the feds and the reserves is perpetual, it's been going on my whole life. Almost every term of office sees this issue raised in one form or another and the net affect is usually absolutely zero.

The other thing that plays heavily here is that Kahnawake is based in Quebec and that severely restricts the reach that the feds have over them. Those of you familiar with Canadian politics will know that Quebec has been granted rather extensive powers within it's borders insofar as many federal issues are concerned. Reserve rights and powers are very definitely part of that.

The bottom line is that the feds can't touch the Quebec reserves unless Quebec agrees and even then anything that happens has to be done by Quebec on behalf of the feds. Given the often antagonistic history of relations between the (Francophone) Quebec government and the (largely Anglophone) feds I'll let you guess how rare that is.

I can certainly see the Feds going after the banks ala the US legislation -- the Canadian Feds are often lock-stepped behind the US in matters like this ... largely because the US has the "diplomatic influence" to see that it stays that way and that's doubly true with the current Canadian government -- but extending their reach to the reserves, especially the Quebec reserves, is an entirely different matter.

Look at it this way: the Canadian Feds are ever eager to be the friend of whatever US administration happens to be in power. The US has ten times the population of Canada and a million times the economic power ... you do the math. It is very rare indeed when a US administration comes down with some pet policy that the Canadians don't get up on the stage to bang the drum right along with them. The war on drugs, NAFTA, gas and oil, beef, lumber, water ... the list is endless. Basically whatever the US wants the US gets, however quiet the Canadian government may be about enforcing it. So ...

It would be a bit of a surprise if the Canadians didn't make some noise for the US re: the UIGEA, and one can well imagine that that means shaking the sabres at Kahnawake. I guess what I'm saying is don't hold your breath on the Canadian feds setting policy for Quebec reserves any time soon.

[maxd]

Can't resist. Here's more from the article Jetset cited (my italics):

The Mohawks of Kahnawake say these laws do not apply to them since they are a sovereign nation. They also cite section 35 of the Constitution, which was inserted to protect native culture. The Mohawks say that gaming has been central to their culture as a means of settling disputes through competition, not violence. Other native groups, such as the Alexander First Nation in Alberta, have said they plan to emulate Kahnawake.

What the Mohawks don't say is that because they are within Quebec borders they are basically a nation (the Mohawks) within a nation (Quebec) within a nation (Canada), a situation made possible by the systematic transfer of power from the Canadian central government to the regions over the last fifty or so years.

Basically what it boils down to is that the Feds in Canada have jurisdiction over the Anglos and those minorities who aren't strong or vocal enough to carve off their own powers.

It's worth noting that the situation is going to be quite different for the first nations peoples in Alberta. Historically they do what they're told to do by the Alberta government and Alberta is more or less the Texas of Canada ... in other words I wish them luck. Unless of course there's an economic benefit to the Alberta provincial government that is too significant to ignore, then Alberta can be quite tough in it's ability to stand up to and face down the feds.

[jetset]

Points well and interestingly made on the Canadian political scene.

A while back this might have been viewed with more alarm, but since the emergence of perhaps "better" jurisdictions closer to Europe the threat to the industry as a whole is mitigated even if the Kahnawake were to be taken down.

UK white-listing had the practical effect of influencing any number of licensees to seek additional jurisdictions anyway. And given the traditionally weak player-sensitivity of the Mohawks there will be little sympathy for them if the feds do move in.

The National Post story highlights something that the Canadians have yet to learn from their American [government] cousins - UIGEA has been effective to a degree, but it now seems to be bogging down on the practicalities of implementation - the criticisms of the regulations for example.

The USA gave a direction for other protectionist or monopolistic nations in the UIGEA - now we see suggestions that the French, Norwegians, Germans and Canadians are toying with the same sort of approach. One can only hope that good sense and Charlie McCreevy will put the brakes on that.

At the root it is not truly moral objections imo, but (depending on whose agenda it is) a mix of commercial protectionism, politics and religious groups with a control compulsion regarding their fellow citizens.

[maxd]

Good analysis Brian, I think you've pretty much nailed it.

The only part I'm not quite convinced of though is the motive for the recent noises from the Canadian gov't. I seriously think it's got more to do with the traditional weak-kneed Canadian "we're with the big guy" approach to international policy than it does with any home-grown Canadian protectionist policies.

I'll bet dollars to doughnut holes that the Canadians would have left the Mohawks to do their thing until the cows came home if they hadn't got one of those "this is what friends do (for us)" calls from Resident Dubya.

[littlebit]

Good analysis Brian, I think you've pretty much nailed it.

The only part I'm not quite convinced of though is the motive for the recent noises from the Canadian gov't. I seriously think it's got more to do with the traditional weak-kneed Canadian "we're with the big guy" approach to international policy than it does with any home-grown Canadian protectionist policies.

I'll bet dollars to doughnut holes that the Canadians would have left the Mohawks to do their thing until the cows came home if they hadn't got one of those "this is what friends do (for us)" calls from Resident Dubya.

Max,I think that would be an excellent bet to make. The government here wants to make sure to spread the misery around to their "friends".

[maxd]

The government here wants to make sure to spread the misery around ....

Sure seems that way, doesn't it?

[wangpoker]

I don't care Kahnawake, but the following message makes me very upset.

The "other measures" are understood to be moves to restrict banks and credit card companies from conducting financial transactions with illegal Internet operators. Similar legislation was enacted in the United States two years ago.

I'll never vote the Conservative.

[jetset]

Here's another - and expert - perspective on the issue:

http://www.casinocitytimes.com:80/ne...ntentID=171684

[maxd]

Good one Jetset, nice addition to the thread.

Just thought I'd add a footnote here. In this second article there's a quote:

"Practically speaking, I don't think the government is looking to move on this because it could lead to violence," Lipton said.

For any of you not familiar with the contemporary history of the Mohawks in Quebec there have been many such incidents. In the recent past, at least, the Mohawks have shown a distinct willingness to defend what they believe to be their sovereign rights and land with armed resistance. I can think of two or three such incidents off the top of my head.

The first was the infamous Oka incident in 1990 which ended up involving the Canadian Army and a lot of heavily armed Mohawk "Warriors" in a confrontation over treaty land rights.

Later that same year shots were fired on Mohawk lands over casino jurisdictions.

And a few years later the Canadian RCMP were in armed conflict with Mohawks selling cut-rate gasoline and cigarettes that they'd brought in from the US (both items are specifically controlled by Federal legislation).

To the best of my knowledge the Mohawks were eventually left to settle their own affairs in all of these incidents. They've got a pretty good track record of getting what they want when they demonstrate that they really want it.