Tobique First Nation

Tobique First Nation is a First Nation located in New Brunswick, Canada (similar to Kahnawake). Tobique First Nation has the right to self-governance under section 35 (1) of the Canada Constitution Act, 1982. Tobique First Nation is the first Maliseet Nation to create a regulatory body to oversee all forms of gaming from its territory, including land based and online gaming. The formation of the Tobique Gaming Commission (“TGC”) is empowered to issue licences to gaming operators and appoint a third-party direct licensee who is entitled to recommend the issuance of licences on behalf of Tobique. This sole and only direct licensee is Differentia Licensing Advisory Group Limited (“DLAG”) Tobique`s aim is to become the global online gaming licensing jurisdiction of choice with a common sense nonbureaucratic approach. Legislation and guidance have been created by industry experts from the gaming community. This new licensing jurisdiction commenced its online gambling licensing process in late 2023, when the first licence was granted in March 2024. See https://thetgc.ca/about/ . Already since its launch in March 2024 , Tobique has granted 84 licences with many more in the pipeline. s, .The Licence register can be seen here: https://thetgc.ca/license-holders/ . In addition, there are many approved vendors ready to service Tobique licensees including Tier 1 gaming software and payment providers . ## Attractions Full array of non-remote and remote gaming licences available, including B2B (voluntary), skill and social gaming A high standard of regulation in line with white listed jurisdictions and aligned with payment and other supplier risk controls, making onboarding with them faster and with confidence in the jurisdiction itself Efficient application process via an online portal with quick turnaround times Low application and ongoing fees (no taxes) No local presence requirements A risk based approach to target jurisdictions with restrictions in line with FATF black list and sanctioning Crypto currencies are accepted with crypto regulations soon to be published ## Challenges Recently launched jurisdiction, so too early to compare with others Under the Gaming Act 2023 Social Gaming is defined as: “means playing in a game of chance for a prize or a game of skill where no money or money’s worth is hazarded or paid in order to participate.” Tobique is therefore one of the only jurisdictions to licence social gaming which in many countries would not be considered within the definition of games of chance and therefore not licensable as a gambling activity. There are considerable benefits in being licensed and it give creditability to customers and suppliers. Particularly in the case of banking and payment providers where the possession of a gaming licence may enable or speed up account opening. As the regulations and codes of practice are risk based, the burden of compliance will be lighter in regards social games vs casino games. Remote skill is a licensable activity under its own licence category. Under the Gaming Act 2023 Skill Gaming is defined as: “Game of skill means: a game when a player invests time in learning, practising and refining their skill to participate for a fee in a particular game in which success depends predominately upon the superior knowledge, training, attention, experience and skill set of the player and where the successful party is entitled to winnings” Tobique is therefore one of the only jurisdictions to licence skill gaming which in many countries would not be considered within the definition of games of chance and therefore not licensable as a gambling activity. However, there are many other countries (and states / provinces) which have stricter definitions of games of chance and treat any games where there are a small or even insignificant level of chance as gambling. Therefore the differentiation of this licence category, particularly as it allows for a predominate test with entry fees and prize money, from a gambling type licence will enable operators to avoid the reputational damage and compliance burden associated with the same. There are considerable benefits in being licensed in this way as it gives creditability to customers and suppliers. Particularly in the case of banking and payment providers where the possession of a gaming licence may enable or speed up account opening. Supply of gaming software is a licensable activity but its not mandatory for supply to Tobique B2C operators, instead its voluntary and as such can give suppliers the benefit of the reputation and credibility associate with holding a licence. Particularly in the case of banking and payment providers where the possession of a gaming licence may enable or speed up account opening. There is a separate category for aggregate gaming software supply, which is defined under the Gaming Act 2023 as: “Gaming software aggregator" means a supplier of proprietary and third party gaming software and/or platforms where the aggregator entity enters into agreements with these third parties to supply their content onto the aggregator’s operator customers subject to an in accordance with the licence issued to it by the Commission.”

Capitalisation / Bank Guarantees. There are no capitalisation or bank guarantee requirements. Application Fees. EURO 18,000 in total, where a non-refundable EURO 2,500 must be paid on application and the balance at time of grant along with the first-year licence fee. Unsuccessful applicants will therefore incur fees of EURO 2,500 Annual licence fees of EURO 18,000 this covers all verticals (ie, social gaming, skill gaming, wagering, betting, betting intermediatory, etc). This covers 2 URLS, more can be added at additional cost Annual mandatory regulatory compliance and supervisory service package: EURO 7,000 Total annual license fees of EURO 25,000 The above annual fee cover up to 10 URLs where there is a charge of Euro 600 per year per additional URL Licence Taxes. There are no gaming taxes, only licence fees are applicable

Payment service providers will need to be approved as vendors before they can services licensees. Under the General Codes they should be appropriately regulated. Crypto payment solutions are deemed higher risk, so there will need to be appropriate controls in place, however they are allowable where a range of the most popular cryptocurrencies, including Bitcoin, Ethereum, ERC-20 based stable coins and a range of other ERC-20 tokens are accepted. New Crypto regulation are imminent and likely to be published by the end of 2024 Money Laundering Requirements There are Money Laundering Regulations and Codes of Practice governing this area which can be found on the TGC website https://thetgc.ca/regulatory-documents/ In terms of customer due diligence: Initial due diligence consisting of: Player identification and verification will need to start at account opening and be completed on the earlier of: consolidated wagers reaching €2,000; before 1st withdrawal or 30 days of 1st deposit PEPs and sanctions screening on account opening & completed before wagering if possible Adverse media check on account opening & completed within 30 days of first deposit and before any withdrawal Enhanced due diligence is required for higher risk situations, mandatory for PEPs, and will be required more in-depth ID verification, source of funds / wealth. MLRO and senior management approval will be required in some situations (such as PEPs) In general AML/ CFT requirements are in line with whitelisted, robust jurisdictions albeit a more risk-based approach rather than a prescriptive approach has been taken. B2B licensees will also be subject to certain AML requirements in accordance with the type(s) of licensed B2B activity. Compliance will largely be monitored by reporting requirements, where any suspicious activity must be notified to TGC and DLAG.

Tobique is generally an outward facing remote gaming jurisdiction, therefore market requirements will largely be dependent of the laws and regulations in place in the target jurisdictions. Under the General Codes of Practice there are basic marketing provisions, namely: licensees must specifically ensure that advertisements are not: Indecent, pornographic or offensive False, deceptive or misleading Intended to appeal specifically to persons under the minimum permitted age In breach of copyright laws Likely to tarnish the image of the Tobique First Nation Comply with the specific marketing and advertising provisions set out above in this Code in relation to responsible gaming and underage participation