The Kahnawake Gaming Commission (KGC) is proposing a rewrite of the community’s electronic gaming regulation in the aim of enforcing more limits on which operators it will decide to grant permits to.
Under the proposed amendments, all those applying for a permit to operate an electronic gaming device (EGD) must first pass a screening by a committee of public safety authorities in Kahnawake, which includes those “responsible for overseeing fire, safety, health, and security within the territory,” according to a draft of the regulation made public earlier this month.
The proposed amendments to the regulation also provide more clarity around who is subject to due diligence investigations required under the KGC’s application process for permits. It’s now proposed those investigations also be carried out on all owners involved with the gaming operator applying, in the instance they’re someone other than the person named as the applicant.
“Due diligence investigations are a vital part of the KGC’s review process for all new applications. These comprehensive reviews are essential for determining the suitability of permit holders and other key parties involved in proposed gaming operations,” KGC chairperson Heather Bauersfeld shared in a written comment.
“The KGC examines various aspects, including the applicant’s past employment, proposed funders, co-owners, and their ability to manage the proposed gaming operations and comply with applicable laws.”
These investigations are carried out alongside “third-party” agents who are “experts in their respective fields,” Bauersfeld added.
These proposed changes to the gaming regulation come following the shuttering of Magic Palace by the KGC in April. It was suspended then after a third-party investigation alleged illegal activity.
That finding came following an investigation published in La Presse alleged the gaming facility and its restaurant had been involved in a money laundering scheme tied to a Mexican cartel.
Magic Palace sued the MCK and KGC and court proceedings are set to start next month.
A new section of the regulation has since been added to mention that the “continuing suitability of an electronic gaming operator and any key person may be reviewed by the Commission at any time.”
The community is being invited to read the proposed amendments and to provide feedback on them.
“Should the KGC receive feedback, it will be thoroughly reviewed, and subsequent steps in the amendment process will be determined accordingly,” Bauersfeld wrote.
Those comments will be accepted up until December 18 and can be sent to [email protected].
