Cyber World Group (GP) pleads guilty in Quebec illegal gambling

[Mousey]

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Last Updated: Thursday, November 29, 2007 | 2:51 PM ET
CBC News
The company that administers the world's largest internet casino Golden Palace.com has pleaded guilty in Quebec to charges of illegal gambling, in a case that raises questions about First Nations' right to hand out gaming licences.

Cyber World Group, which administers the online casino through a server located on the Kahnawake Mohawk reserve, pleaded guilty to the two charges in September and must pay a $2 million fine, the CBC's French language service, Radio-Canada, has learned.

The charges laid against the virtual casino are the first ever in Quebec, and raise questions about the Mohawk reserve's authority to hand out gaming licences.

The online casino industry is flourishing in Kahnawake, where hundreds of betting sites are ...

 

[jetset]

This should trigger a rush to license in (recognised) EU jurisdictions of those who haven't already taken the precaution of doing so as a backstop, imo.

I believe it sets an uncomfortable precedent in Canada and indicates that the Quebec authorities are, as has been previously surmised and reported, digging away in the background at building up a case for more effective enforcement on the Mohawks in defence of the provincial right to legislate and license gambling.

But the Mohawks have a helluva lot to lose - I think we're going to hear a lot more on this subject.

 

[Casinomeister]

Eh?

The Mohawk territory is recognized as a world leader in internet gaming, and has no qualms about its reputation, band council officials said.

"I'm not just making that up," said Delaronde.

"You go to any of the publications around the world about this and Kahnawake is well-respected. Its jurisdiction is unquestioned. The only place where there is a question is in [our] backyard."

Just a quick glance at the Rogue section at Casinomeister comes up with 86 casinos in the Rogue/Not recommended section - 22 of these are licensed in Kahnawake - that's about 25%.

I wonder if this journalist knows how to use Google

Google: "Kahnawake casinos" and it's right there.

So yes, I have qualms about their reputation. There's a bit too much of closing the barn doors after the horses have fled. It's alarming.

Even though MIT has state of the art facilities (it is pretty awesome, I've been there), protecting the player from roguish operations has not been a very high priority I'm afraid.

 

[jetset]

Update

KAHNAWAKE RESPONDS TO CBC STORY

Mohawk exec explains policing agreements and denies Quebec friction

Last week's news originated by Canadian medium CBC that the owners of Kahnawake licensed Golden Palace online casino had paid a fine for illegal gambling was given a different perspective by a member of the Mohawk Internet Technologies board this week.

The original report revealed that following a police raid on the Montreal offices of Cyber World Group last year, that company had paid a $2 million fine. Cyber World operates Golden Palace Casino, which is licensed by and operates on servers located on Kahnawake First Nation territory. The Kahnawake Gaming Commission contends that it is exempt from the Canadian Criminal Code which gives sole authority to issue gambling licenses to the Canadian provinces. This claim is in terms of the native rights provisions enshrined in article 35 of the Constitution.

This week MIT exec Chuck Barnett reassured the many online gambling operators using the Kahnawake facilities that there is no need for concern following the actions of the Quebec provincial authorities against CyberWorld.

"Actually, as these events have little, if anything to do with the jurisdiction of the Mohawks of Kahnawake, it has not been an issue for us," Barnett said. "My understanding is that these offices were located well into the City of Ville St. Laurent, a borough of Montreal. And it was the offices of CyberWorld Group (CWG) that were raided. This entity is not licensed by the Kahnawake Gaming Commission."

Barnett went on to describe the relationship between Kahnwake and Quebec province (the enclave is a short drive out of Montreal) as good and 'productive'.

"Kahnawake has a recognized policing agreement with the Quebec Minister of Security which was established in 1999 and incorporates a standard for policing protocols between the Kahnawake Police Force and those of the neighboring communities," he said.

"The Mohawk Council of Kahnawake has a very productive relationship with the Government of Quebec, and each regularly communicate and meet to discuss matters of mutual concern and interest. A number of examples may be found in the Ten Administrative Agreements entered into between Kahnawake and Quebec in 1999 which continue to be maintained and respected to this very day.

"Unfortunately, this does not make for very exciting or dramatic storytelling and is an item which seems to be "misplaced" at press time in some of the Quebec media."

 

[jetset]

MOHAWKS SPEAK ON GOLDEN PALACE FINE (Update)

"We will not allow Quebec or any other entity to compromise our right to carry on commerce,” says band chief

For the second time in as many days, Khanawake officials have issued statements seeking to reassure licensees following news of a $2 million illegal gaming fine imposed on the owners of the Golden Palace online casino (see previous InfoPowa reports)

This time it was Grand Chief Michael Ahrhrhon Delisle, Jr., pretty much backing up an earlier statement by Mohawk Internet Technologies issued over the weekend.

The Grand Chief comments: “In relation to recent events surrounding Cyber World Group, we must point out that this company operated out of offices located in St. Laurent, Quebec – outside of our jurisdiction. At no time was any Mohawk person or entity charged in this matter.

“We will once again restate our position. Kahnaw:ke has become an industry leader by creating one of the most respected and well-regulated jurisdictions in the entire world. We will not allow Quebec or any other entity to compromise our right to carry on commerce.”