Golden Palace Pleads Guilty To Online Gambling Charges PDF Print E-mail
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Written by Michelle Bush   
Friday, 30 November 2007

Golden Palace was fined $2 MillionGolden Palace Fined $2 Million In Quebec Courts

Canadian-based online casino, Golden Palace, has become use to making headlines over the years. From the infamous Golden Palace streaker to insanely eccentric purchases at online auctions, appearing in print is certainly a key element to the casino’s success. Now Golden Palace is making headlines for an entirely new reason – for being the first company to be prosecuted and fined in Canada for operating an "illegal" online casino.

Golden Palace Online Casino has a long history of headline grabbing antics, which ultimately propelled the company to be the #1 most recognized online casino in the world. The craziness of the Golden Palace media machine began nearly half a decade ago, when some brilliant (or insane) member of the Golden Palace marketing department came up with the bright idea of having professional boxers wear larger than life Golden Palace logos in the form of temporary tattoos.

The sponsorship scheme worked beyond anyone’s wildest expectations. Not only did those attending the fight log on to find out what a Golden Palace was, but many of the fights were televised, giving the company instant reach into millions of homes. It eventually looked as though the powers that be were planning to pull the plug on these antics, but by that time the company was already working on it’s next crazy scheme, which would be dubbed the Golden Palace Streaker.

Again wearing the famous Golden Palace tattoo, the streaker would attend various televised sporting events under the guise of being an average fan. Sooner or later, the clothes would come off and the streaker would find himself being chased by event security. The Golden Palace streaker made his appearance at such big name events as the 2004 Super Bowl, best known for Janet Jackson’s wardrobe malfunction. Although the streaker himself was not televised, the company saw a 350% spike in business immediately after the event.

Eventually the company pushed the streaker too far when he was sent to make an appearance at the Olympic Games. At this time the Kahnawake Gaming Commission, which issued the online casino license used by Golden Palace, said enough was enough, and pulled the plug on the naked antics. No sweat, Golden Palace was already well into their next tactic – the wonderful world of online auctions.

Golden Palace had a simple strategy for internet auctions. Pick the craziest, most unbelievable item, and pay unheard of amounts of money for it. The recipe was a total success at generating millions of dollars worth of media publicity, far more than the $100,000 per month budget the company was spending on auctions.

Some of their most famous auctions included a haunted cane, a pregnancy test reportedly taken from the garbage of Britney Spears, and, of course, the 10 year-old partially eaten grilled cheese sandwich that commanded a $28,000 price tag due to the likeness of the Virgin Mary that was seared into the bread.

But that was then, and this is now. These days Golden Palace is making headlines for an entirely different reason. After having their Canadian offices raided last year, the company has now had it’s day in court. The company plead guilty in a Quebec court to charges of operating an illegal online casino, and received a fine of $2 Million.

The online gambling industry is keeping a close eye on further developments in the case, due to the fact that Canada has always been one of the most well-respected locations for obtaining an online casino license – licenses that the Canadian Government is now claiming to be illegal.

Golden Palace, like nearly 450 other online gambling establishments, was issued a license by the Kahnawake Gaming Commission. This gaming commission is part of the Mohawk Territory, and has always maintained the position that their right to issue these license in protected under the Canadian Constitution. Legal experts say that it is a grey area of the law that has never been well defined, and all eyes are now on Golden Palace to determine if their case sets a precedent against operating an online casino on the reservation.

Golden palace could not be reached for comment.

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