USA Law and Practice Contributed by: Chao Yu (Charles Yu) and Greg Pilarowski, Pillar Legal
New Jersey, the Division of Gaming Enforcement per- forms a similar role. These agencies are responsible for conducting licensing suitability reviews, ensuring operational integrity, and monitoring financial report- ing to maintain compliance with state gaming laws. Tribal casinos, in turn, are regulated under the Indian Gaming Regulatory Act (IGRA) and operate pursuant to tribal–state compacts. Oversight is shared among tribal gaming commissions, state regulators, and the National Indian Gaming Commission (NIGC) at the federal level, which ensures compliance with both tribal and federal gaming standards. 4.2 Regulatory Approach State laws with respect to gambling vary widely. Gen- erally, however, gambling is prohibited unless the state enacts legislation expressly permitting such conduct. Most state gaming commissions implement detailed, rule-based systems that specify licensing standards, technical requirements, internal controls, and report- ing obligations. These prescriptive frameworks are designed to ensure operational integrity, consumer protection, and transparency across all licensed operations. 4.3 Types of Licences Gambling regulation in the USA is primarily state- based, with licensing requirements varying by state and by type of activity. The main categories typically include: • licences for gaming operators; • licences for manufacturing or supplying devices or equipment; and • licences for officers, directors, and key employees involved in gaming operations. Some states may distinguish licences in greater detail. For example, in Delaware, operational licences are divided into “restricted” and “non-restricted” licences. The “restricted” licence applies to persons or entities conducting “restricted” gaming operations consisting of no more than 15 slot machines, which allows gam- ing operations in taverns and grocery stores. Persons or entities conducting “non-restricted” gaming opera-
tions consisting of 16 or more slot machines, other games (such as table games, keno, and bingo), or race and sports pools must apply for “non-restricted” licences. 4.4 Availability of Licences The availability of gaming licences in the USA varies by state and is generally subject to stringent suitability and regulatory requirements. For example, in Nevada, there is no fixed numerical cap on the number of gaming licences that may be issued. In contrast, many other states have a cap on the number of licensed casinos. Under the Illinois Gambling Act, for instance, only up to 16 operator licences may be issued for casino gambling. In New Jersey, there is no limitation on the numbers of the operator licences, but casino gambling is restricted to Atlantic City. However, there is usually no restriction on the number of licences for suppliers of gaming devices or equip- ment that can be issued. 4.5 Duration of Licences The duration of a gambling licence in the USA differs by state and licence type, as each jurisdiction sets its own renewal schedule and conditions. For example, New Jersey requires renewal for casino licences every five years, while in Nevada, the casino licence is sub- ject to annual renewal and ongoing suitability review. 4.6 Application Requirements Most states require gaming operation licence appli- cants to demonstrate suitability, which generally includes good character, honesty, and integrity. This standard reflects a consistent policy objective – ensur- ing that the gaming industry is not perceived as cor- rupt or influenced by criminal activity. Accordingly, applicants with prior felony convictions may be disqualified from obtaining a licence to oper- ate gaming machines or facilities. Similarly, a state gaming board may deny an application if an appli- cant or its owners maintain personal or professional associations with convicted felons or with individuals or entities under investigation for illegal gambling or related offences.
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