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Golden Palace, the online casino that grew their fame by utilizing odd advertising schemes, pleaded guilty yesterday to charges of illegal online gambling in Quebec, Canada.
According to a French language news radio station the infamous online casino, owned by Cyber Group World, has pleaded guilty to two charges of illegal gambling and now must pay a fine of $2 million.
Cyber Group World, along with many other companies who run online casinos – that amount for over 60% of the Internet’s gambling traffic – are licensed by the Kahnawake Gaming Commission, which is run from native Indian Mohawk land in Canada.
The Mohawk representatives claim they are able to issue licenses to online casinos because they are protected by the Canadian Constitution, which states in section 35 that native Indian rights are protected.
Joe Delaronde, a Mohawk representative, told CBC News that they have issued over 400 licenses and are well respected around the world for providing fair and properly regulated licensing systems.
The charges against Golden Palace, who have their offices outside of Mohawk territory in Canada, came about because Canada says only licenses issued by the provincial government are recognized by the country.
The case is similar to the American online gambling laws in that the answer to this dilemma is undefined and has never been ruled on in a court of law.
Police Storm Twenty Genesee County, Michigan Bars in Gambling Raid
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Over eight months of investigation culminated on Monday when federal, state, and local police officers raided twenty bars in Genesee County, Michigan.
The raid started Monday morning at 9:00 A.M. at Cloud Nine Bar, and then proceeded over the course of the next few hours at other bars in the county.
A staggering $8 million was said to have been involved in the investigation, a figure that came straight from Michigan State Police Inspector Ellis Stafford.
“We estimate that $8 million was lost to the state or otherwise hidden through this illegal gambling”, he said.
State liquor control officials notified police of the illegal gambling back in March, and the investigation started shortly after.
Convictions of illegal gambling can come with up to ten years in prison.
In addition to the bars, police were also at Hatch Enterprises, owned by Craig Hatch. Hatch owns a local chain of bars in Michigan.