Customers in the U.S. will no longer be permitted by the Kahnawake Gaming Commission (KGC) to be served by its online gambling licensees after it was determined that Continent 8, LLC, an Internet technologies firm, may have violated its New Jersey license.

On Monday, the New Jersey Division of Gaming Enforcement (DGE) announced that it and the KGC had reached an understanding that will prevent Kahnawake-based websites from accepting bets from U.S. residents if the websites are not authorized.  The new policy will take effect on September 30.

According to the press release, DGE took prompt action when it became aware that services may have been provided by Continent 8 to illegal Internet gaming websites via the data center located in the Mohawk Territory of Kahnawake, a sovereign jurisdiction located just outside Montreal, Quebec, Canada. Specifically mentioned were sites offering, “illegal online sports wagering,” according to the release.

After extensive discussions regarding unique jurisdictional issues, with the KGC and the Mohawk Council of Kahnawake, the DGE was able to ensure that once the policy goes into effect Kahnawake-originating websites would no longer be available to residents of the U.S where such companies are not authorized to operate.

The result of the new policy is that trusted casino sites such as Intertops, Clubworld, Bovada, Slots.lv, Aladdin’s Gold, Allstar Slots and several others will no longer be able to list the KGC as their licensor and will not be able to offer their players dispute resolution services through the commission. In recent years the KGC has become known as offering one of the fairest dispute resolution services in the world to its license holders.

While the DGE action may appear to protect players in New Jersey, and perhaps Nevada and Delaware – in effect, it leaves the rest of the country without a viable online casino regulator.

David Rebuck, Director of the DGE, said, “The Division is pleased to have the KGC’s assistance as a fellow regulator and looks forward to working together in the future. We were able to reach a series of agreements that are amenable to all of the parties involved and satisfy the Division’s regulatory concerns. The Division appreciates the KGC’s commitment and looks forward to its continued cooperation in the fight against unlicensed Internet gaming traffic. This agreement is an important step in ensuring the integrity of Internet gaming operations in New Jersey and helps ensure that online gaming patrons can play on fair, regulated sites,” according to the news release.

 

Additional reporting by Lars Jones