Location for the Hottest Gaming Sites
CasinoGambling Central. com is the central location for the hottest gaming sites. Is online gambling legal? Is online gambling legal in the United States? Is online gambling legal in Canada? What are the laws on online gambling? What countries is online gambling legal in? How can I find out if online gambling is legal? Is online poker legal? Is online bingo legal? Is gambling online legal? How is online gambling regulated? ... find out here.

Online Gaming Regulations


A significant number of PartyGaming’s customers, generating six per cent of PartyGaming’s revenue in 2005, reside in Canada. PartyGaming advertises its play money gaming site in Canada and receives funds from, and pays out winnings to, its Canadian based customers. In addition, PartyGaming contracts with a third party that operates its real money poker gaming servers located in the Mohawk Territory of Kahnawake. In addition to its Gibraltar gaming licence, PartyGaming holds a secondary gaming licence issued by the Kahnawake Gaming Commission.

The Kahnawake Gaming Law was enacted in 1996 by the Kahnawake Mohawk Council to permit online gaming operators to be licensed in the Kahnawake Mohawk Territory, an Indian reserve. Although residual tensions exist between the government of the province of Quebec and Kahnawake as to the validity of the sovereignty of the Mohawk Indians and the sovereign powers of Indian societies have not been upheld by Canadian case law in the past, the Directors do not anticipate an imminent challenge to the regulatory regime in the territory.

If the prosecuting authorities in Canada regarded the computers of PartyGaming’s customers in Kahnawake as being both in Canada and “a device for gambling or betting”, prosecutions could be brought in Canada against such customers.

In addition, the Canadian criminal code prohibits the offering or advertising of gaming services to customers resident in Canada. This prohibition has been applied in case law to an online company with a physical presence and assets in Canada. As a result, criminal or civil action could be taken in Canada against the Group or the Directors.

Canadian authorities may seek to disrupt operation of the servers used for the Group’s poker business in Kahnawake, either through political pressure on the Mohawk tribe or by seizure of the equipment hosting the Group’s poker site, which would have a material adverse impact on the Group’s financial position. Any attempt, whether successful or not, by the Canadian authorities to bring an action against any Group company or its directors would be likely to require the Group to take defensive action, resulting in legal and other costs and in the diversion of management time and resources. Any such action against the Group, the Directors or customers could have a material adverse effect on the Group’s financial position.

Notwithstanding that its activities may be deemed illegal under Canadian federal and provincial law, there are jurisdictional issues regarding the imposition, adjudication and enforcement of Canadian law against PartyGaming and its Directors, as the Group’s relevant operating subsidiaries are not incorporated in Canada and do not have a physical presence or own any assets there other than the Group’s real money poker gaming servers in Kahnawake.

The Directors have also been advised that, for jurisdictional reasons, it would be difficult for any company to be prosecuted on a criminal charge in Canada or for a director to be prosecuted on a criminal charge on his own behalf or on behalf of the company of which he was a director if he were not physically present in Canada.

In any case, there can be no guarantee that any renewal of the secondary licence from Kahnawake will not be on terms that are less favourable to the Group or that new, renewed or subsequent licences or approvals that may be required of the Group in the future will be granted. Partly as a result of these risks, the Group is in the process of seeking to reduce its reliance on the Mohawk Territory.

In addition and in accordance with its Gibraltar gaming licence, PartyGaming has moved its casino and bingo servers from the Mohawk Territory to Gibraltar and will relocate its poker servers to Gibraltar within six months of sufficient telecommunication infrastructure becoming available.

Reprinted with Permission From: © 2007 PartyGaming. All Rights Reserved