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Yes, the Canadian Government banned them in the Indian Act, signed on April 19, 1884, it was declared that:

"Every Indian or other person who engages in or assists in celebrating the Indian festival known as the "Potlatch" or in the Indian dance known as the "Tamanawas" is guilty of a misdemeanor, and liable to imprisonment for a term of not more than six nor less than two months in any gaol or other place of confinement; and every Indian or persons who encourages… an Indian to get up such a festival… shall be liable to the same punishment"

It was largely unenforced however. Almost no one was ever charged. It was gradually made harder to enforce and repealed in 1951.

US Indian agents and missionaries tried to ban it as well but they were hugely out numbered and never had much success.

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