Media Affiliate Gaming License & Betting and Sports License in USA
The potential for foreign investors to share in the booming legal US online gambling sector has sparked great interest in the acquisition of affiliate gambling licenses, which allow them to promote traffic to associated US-based gaming operations and in return receive a great reward.
In this article, we will provide you with information about licensing requirements and procedures for affiliates within online gaming for all the states that have already opened their gates, as well as a number that will probably be doing this within the next 12-18 months.
GBO has 12 years experience in consulting for customers all over the world seeking to establish a presence in online betting and sports betting in the US.
We can help you obtain your Affiliate Gaming License, please contact us
What are the specific state laws and regulations for online gaming and sports betting in USA?
Every state has complete control over the gaming activities in its jurisdiction. There are no federal laws or statues. There are many differences between the individual states. In the following table, we summaries the current status for the 21 states that have already either opened up to online gambling and sports betting, or are likely to do so in the near future.
Media media affiliate license in USA
|Arizona||Approved, awaiting further action by regulators||Sports betting regulations require all affiliates to apply for licenses to promote online sportsbooks. The Arizona Department of Gaming requires applicants to start the licensing process by completing an inquiry form for all levels of event wagering licenses. After the Department receives the inquiry form it will send the 'ancillary suppliers' licensing form to the prospective affiliate. The Department of Gaming charges a $1500 initial licensing fee and $500 renewal fee for affiliates.|
|Arkansas||Only physical sportsbooks permitted||There is no online wagering in the state.|
|Colorado||Full mobile betting with multiple options||Sports betting affiliates are required to apply for one of two types of licenses from the Limited Gaming Control Commission. Affiliates who provide marketing services for operators on a CPA basis must acquire a vendor minor license which involves filling out a relatively simple form and paying a $350 registration fee. Affiliates who wish to provide marketing services on a revenue share basis must acquire a vendor major license. The vendor major license costs $1200 licensing fee plus a $10000 background check deposit. The Division of Gaming bills applicants $77 per hour spent by investigators for conducting background checks along with all expenses incurred by investigators during the investigation.|
|Delaware||Only physical sportsbooks permitted||Delaware’s lottery-run sports betting market still prohibits online betting|
|Illinois||Full mobile betting with multiple options (in-person sign up required)||Illinois will require sports betting affiliates to acquire licenses. State law does not specifically state that affiliates need to be licensed but regulations outline five different types of licenses needed for operators, suppliers and other key employees. Among those five types is a Supplier License which can be applied to any other purveyor of goods data or services to a master sports wagering licensee. No licensee may enter into an agreement with a third party to conduct advertising or marketing on behalf of or to the benefit of the licensee when compensation is dependent on or related to the volume or outcome of wagers|
|Indiana||Full mobile betting with multiple options||Indiana licenses sports betting affiliates for CPAs through a simple application criminal background check and a $500 application fee. Indiana may introduce a second licensing tier for affiliates who wish to promote betting sites on a rev share basis.|
|Iowa||Full mobile betting with multiple options||Iowa legalized retail sportsbooks and mobile betting in 2019. State law does not address marketing affiliates. In response to an inquiry the Iowa Racing and Gaming Commission said this: Currently the Iowa Racing and Gaming Commission (IRGC) is not licensing marketing affiliates or payment processors. However licensed operators need to provide a list of companies they are partnering with to IRGC and the licensed operator may be required to submit qualifying contracts to IRGC for approval. Certain services on the platform may also require lab certification. Iowa has some of the cheapest licensing fees in the land - $45,000 for the first year to get an initial license and a renewal fee of $10,000 annually|
|Mississippi||Restricted to “In-person online” betting.||The state technically has mobile wagering, but you can only place bets while inside a casino. The initial retail sports betting legislation was passed as a corollary to a fantasy sports bill at a time when the federal ban appeared unlikely to be lifted.|
|Michigan||Full mobile betting with multiple options||Law establishes two licensing classes for affiliates. Affiliates who receive compensation on a flat fee basis must register with the state as vendors. Vendor registration includes filling out an application and submitting a nonrefundable $200 application fee. Registrants must also certify that they do not promote or market illegal online sportsbooks to Michigan residents. Affiliates who operate on a revenue share basis must hold sports betting supplier licenses. Supplier licenses include a $2500 nonrefundable application fee background check, $5000 licensing fee and $2500 annual fee.|
|Montana||Restricted to “In-person online” betting.||Montana officially started taking bets in March 2020 with a sports betting app run by the company that runs the state lottery. This government-run monopoly keeps out other top sportsbooks and can jeopardize competitive prices. It also only works in licensed gaming properties.|
|New Hampshire||Restricted to one mobile betting option||DraftKings is the sole mobile operator in the state|
|Nevada||Full mobile betting with multiple options (in-person sign up required)||Mobile sports betting is limited by in-person registration which hampers the effectiveness of online marketing. Meanwhile the online poker market is limited to a single operator WSOP.com. The Nevada Gaming Control Board (NGCB) at one point stated it would require online poker affiliates to apply for licenses. Caesars Affiliates allows affiliates to promote WSOP Nevada on a CPA basis after filling out a simple online application.|
|New Jersey||Full mobile betting with multiple options||New Jersey prospective affiliates must acquire a vendor registration number in order to promote legal gambling or sports betting sites on a flat advertising or CPA basis. Acquiring a vendor registration number incurs no cost to the affiliate but a licensed gaming operator must submit an application on behalf of the affiliate. For example an affiliate could approach the Caesars Casino affiliate program and request to join. If accepted Caesars would apply for a vendor’s license on behalf of the affiliate. The affiliate would then be given a Vendor Registration Supplemental Disclosure Form to complete and submit to the NJDGE directly. This only needs to be done once. After approval the affiliate would be added to the Active Vendors List and may work with other operators without re-filing. If you’re wanting a revenue share you need to get an Ancillary CSIE license which requires significantly more information about the affiliate and incurs a non-refundable $2000 fee.|
|New Mexico||Only physical sportsbooks||No bills have been passed, but Native American tribes have interpreted that sportsbooks are legal at tribal casinos under existing state-tribal gaming compacts.|
|New York||Only physical sportsbooks; online launch pending in 2022||New York has retail sports betting at a handful of upstate commercial and tribal casinos|
|North Carolina||Only physical sportsbooks||the state is expected to consider statewide mobile wagering in 2021|
|Oregon||One mobile betting option||The state lottery could begin taking bets without a separate act of the legislature. The state lottery app took its first bet in 2019, but with only one legal mobile wagering option|
|Pennsylvania||Full mobile betting with multiple options||Similar to NJ there are two licensing models in Pennsylvania - one for CPA and one for revenue share agreements. In both cases affiliates are required to get fingerprinted and go through an extensive background check. Affiliates who wish to promote PA sports betting and gambling sites must apply to become a registered gaming services provider. This comes with a $500 application fee, an additional fee of $60 for each direct and indirect owner of 10% or more and a $2500 registration fee (renewable every 5 years). Registering to become an approved CPA affiliate in Pennsylvania is a much more in-depth process than doing so in New Jersey and more expensive. Affiliates who wish to apply for licenses to promote PA gambling sites on a rev share basis must become a certified gaming services provider. This involves a more in-depth and expensive background investigation than what is required to promote on a CPA basis. Becoming a certified gaming services provider involves larger fees: $2500 application fee, $500 for each of the applicant’s holding companies, $1000 for each key employee or principal, $5000 initial licensing fee|
|Rhode Island||One mobile betting option||Has legal sports betting since 2018 when retail sportsbooks opened at its two commercial casinos. William Hill (now owned by Caesars) is the only legal retail and online sportsbook in the state.|
|Tennessee||Full mobile betting with multiple options||Since it has no casinos, Tennessee is the only state that has online-only sports betting. Tennessee requires affiliates to fill out a Vendor Registration Form and pay a $500 fee to cover the cost of the investigation. The Vendor Registration Form asks applicants for basic information such as name and address, business name, summary of intended services to be supplied to operators, information on any other gaming permits held by the applicant, criminal history, bankruptcy or insolvency history, ongoing litigation and copies of the businesses articles of incorporation or other legal documents related to the formation of the business.|
|West Virginia||Full mobile betting with multiple options||Sports betting affiliates must apply for a supplier license and pay a $1000 registration fee payable to the West Virginia Lottery. Applicants must also acquire a WV State Tax Department Business Registration Number and a WV Secretary of State Certificate of Authorization both of which can be applied for online.|
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What is the main attraction for affiliates?
Affiliates get a chance to participate in the massive boom in online gaming occurring in the US, as more and more states open up to this field. Right now, there are just the eight states that have already established online gambling operations – Arizona, Colorado, Indiana, Michigan, New Jersey, Pennsylvania, Tennessee and West Virginia. Already, another 23 states are on the brink, with legislation either waiting for approval, or investigations underway for drafting the required laws.
Considering the size of the US in terms of both population and spending power, the potential for affiliates is huge, and the number of foreign participants looking to climb aboard the American market will increase exponentially.
This makes it important to get a foot in the door as early as possible.
How easy is it to become an affiliate from outside the continental US?
There are many obstacles to overcome, which is why you need to get professional help from experienced advisers like GBO.
What are the principles of affiliate programs
Affiliates work to promote activity for US-based associates by posting material on their own website, and through social media, promoting online gambling that will channel potential gamblers through to the service portal of their associate.
With our help at GBO, you will be able to get an affiliate gaming license in the state that you choose in the shortest possible time and the lowest cost.
How do media affiliates license holders get rewarded?
Companies that have negotiated gaming affiliate or media affiliate licenses with US-based casinos generally agree on receiving reward for the traffic in one of two possible ways:
Cost per acquisition (CPA) pays a fixed fee once a new customer who has been channelled through to the gaming portal signs up and follows through with specified actions. Typically, these actions are making a deposit of a minimum amount, and making a certain number of bets. The purpose of these steps is to prevent customers from making new accounts without taking any actions, which costs the casino both the reward of the CPA, and the batch of free games that are typically offered to new accounts as an incentive to come on board.
Revenue sharing is calculated on the profit that the gaming site earns from the wagers placed by the channeled customer, and the media license holder earns for as long as the customer remains on the gaming sites books. It is similar to the gross gaming revenue (GGR) taxation system that most jurisdictions use to tax online gaming companies. In this case, the affiliate’s proportion of the GGR is fixed by the agreement between the casino and the affiliate at the time of contract.
Must an affiliate be located in the US?
According to federal laws relating to money transfers, it is necessary to establish a presence in the state where the affiliated gaming company resides. This is due to the prohibition on interstate wire transfers in gaming.
What will the affiliate license cost?
Generally, there are two cost structures. CPA licenses are both easier and quicker to obtain, and are generally cheaper. It ranges from free in New Jersey through $500 in Tennessee, Virginia, Colorado and Indiana, $1000 in West Virginia and $2500 in Pennsylvania. Full information is provided in our table above.