The Cost of Moving Too Fast: Is Your Company Really Ready to Apply for a US Gaming License?

By: Amanda Holi

The allure of the US gaming and gambling market is undeniable. As more states legalize sports betting and online gaming, it seems full of possibilities. But as someone who navigates these regulatory waters daily, I often have to ask new clients a tough question: Is your company actually prepared to apply for a US gaming license?

Entering the US isn’t just about having a great product; it’s about surviving a rigorous, intrusive, and often exhausting bureaucratic marathon. If you’re thinking about expanding to or applying in the US, here’s a quick check to see if you’re really ready to start your first application.

1. The Operator Agreement: Solving the Chicken-and-Egg Dilemma

One of the most significant challenges to starting is a classic “chicken-and-egg” story. You want a license to establish a relationship with an operator, but most jurisdictions require you to establish an operator relationship to get a license.

Does your company have a signed Letter of Intent (LOI) or agreement with a licensed operator? This document must be specific, detailing:

• A clear description of services.
• The specific gaming vertical(s) supported.
• The jurisdictions to be served.
• The payment terms and compensation methods.

If you answered no, your company is not ready yet. Most regulators will not even issue a licensing determination—let alone a license—without proof of a business relationship. The good news is that many operators understand this situation. They are often willing to sign an LOI or agreement that takes effect upon your licensure. Without this document, there is no reason to proceed past Go.

2. The Manpower Mandate: Who is Driving the Bus?

Licensing is not just another  “side task” for your HR or Legal department. It is a major project that requires significant attention.

Do you have a dedicated internal project lead or a professional ready to facilitate the entity application?

As my colleague Kyra Pulliam—an amazing new licensing and compliance analyst here at the firm—and I can confirm, licensing can easily be a full-time job for several people, depending on the scope. If you don’t have someone whose primary focus is gathering entity data, tracking deadlines, and communicating with regulators, your company is likely not ready—unless you bring in a firm like Ifrah Law to help!

The Evidence: The “Copy-Paste” Trap

To understand why this role requires such dedicated manpower, look no further than the “multi-jurisdictional patchwork.” As I mentioned in my previous blog post, “Secrets of a Compliance and Licensing Analyst,” many clients think they can simply copy and paste an application from one state to another, but that’s not the case.

In reality, the regulatory differences are significant and require close attention to every detail. You cannot adopt a one-size-fits-all approach because of variations in:

· Disclosure Thresholds: What qualifies as a “minor” stake in one state is a major filing requirement in another.

· Definitions of Key Personnel: Titles don’t always translate; a CTO might be a “Key Person” in Pennsylvania but handled differently in Arizona.

Without a dedicated lead to navigate these state-specific nuances, you might find yourself using “Control, Z” for a lot of copy-and-paste work.

3. Executive and Owner Preparedness: The Suitability Deep Dive

Are your executives and owners prepared to share their most sensitive personal information and documentation? In the world of US gaming, “suitability” is a deep dive, not a surface-level background check.

If there is any hesitation from your leadership or ownership regarding the disclosure of personal finances, tax returns, or historical documentation, your company is not ready. There is no way to avoid individual requirements. Suitability is the cornerstone of the US market; if your executive or owners aren’t ready to be an open book, the door will remain closed.

The Bottom Line

Preparation for the US market isn’t measured in months; it’s measured in the quality of your actual readiness, not perceived readiness. If you say “yes” to every question posed above, it’s time to pause and bolster your compliance strategy before you spend a dime on application and licensing fees.

Bonus Tip: Watch the Clock (and the Pace)

As a former regulator, trust me when I say: regulators see an expiration date on your information and documentation. Some states require that specific information and documents be dated within a very narrow window, often just a few months, before you submit them.

If your documentation is “stale” by the time it hits the regulator’s desk, it won’t just cause a delay; it will lead to a frustrating cycle of re-filing and additional expenses. There is absolutely no reason to rush if you are not fully prepared. In the world of gaming licensing, timing and preparedness are not only strategies but also requirements.