Dec 18th 2007

Cyber World Group pleads guilty in the Quebec case under accusation of illegal gambling. Cyber World Group is the company that manages one of the world's biggest online casinos, GoldenPalace.com. The server of the online casino is sited on the Kahnawake Mohawk reserve. According to the charges in September, Cyber World Group must pay a $2 million fine.

The case raises questions about Mohawk reserve's authority to release online gaming licenses especially since this are the first charges of such king released against an online casino in Quebec.

In Kahnawake hundreds of online casinos are hosted on servers run by the Mohawk Internet Technologie (MIT), a business created by the community's band council. The online casino industry is prosperous in Kahnawake, almost 60 per cent of the world's online gambling traffic runs through servers in Kahnawake.

However, according the Criminal Code, only the provincial government is certified to release gaming licenses, which encouraged Quebec police to raid the Montreal-area offices of Golden Palace.com more than a year ago as part of its investigation.

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