Managing Company of Poker Site GoldenPalace.com Fined $2 Million

Cyber World Group, the company that oversees GoldenPalace.com, has plead guilty to two charges of illegal gambling and was handed a $2 million fine.

The Golden Palace Online Casino, which is the largest internet gaming site in the world, had its Montreal, Quebec, based offices raided last year. Cyber World Group is managed by Mohawk Internet Technologies, which operates from a server located on the Kahnawake Mohawk Reserve.

CBC News reports that the charges stemmed from the Canadian Government's "decreased tolerance towards online gaming." Canadian law states that only the government can grant gaming licenses, making any Mohawk granted licenses illegal.

According to Joe Delaronde, a Kahnawake band council member, the Mohawk Gaming Commission has granted 443 permits thus far. That makes Kahnawake Mohawk Reservation the home for the majority of the world's online gaming.

The Mohawk tribe has a history of violent run ins with the Canadian Government, including the infamous Oka Crisis of 1990, which lead to the deaths of two military personnel and a bystander. The Mohawk tribe argues that it is protected by traditional native rights, which lie within the Canadian constitution.

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