Online casino, Golden Palace, pleaded guilty to charges of illegal gambling in Quebec, Canada.
The online gambling firm, which is owned by Cyber Group World, pleaded guilty to two charges of illegal gambling and must pay a fine of $2 million.
Many companies who run online casinos such as Cyber Group World, are licensed by the Kahnawake Gaming Commission, which is run from native Indian Mohawk land in Canada.
The Canadian Constitutions protects native Indian rights, which is why many Mohawk representatives are able to issue licenses to online casinos.
A Mohawk representative, Joe Delaronde, 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.
Golden Palace holds its offices outside of the Mohawk territory, so the charges came about because Canada says online licenses issued by the provincial government are recognized by the country.
This case is similar to many cases in the US concerning the Unlawful Internet Gambling Enforcement Act. Online gambling laws cause dilemmas since many are undefined and have never been ruled on in a court of law.
