USA Law and Practice Contributed by: Chao Yu (Charles Yu) and Greg Pilarowski, Pillar Legal
In addition, applicants for gaming licences are also required to prove, by clear and convincing evidence, their financial stability, integrity, and responsibility. This evaluation extends to the applicant’s holding companies, affiliates, and other qualifying entities. Suitability reviews assess not only solvency but also honesty, transparency, and sound judgement in busi- ness dealings – including how prudently and respon- sibly applicants manage and safeguard assets under their control. 4.7 Application Timing It is difficult to estimate precisely how long a gambling licence application will take, as each state follows its own independent review process and timeline. The overall timing generally depends on: • the type of licence sought (eg, land-based opera- tor, online operator, supplier, or key employee); • the scope and depth of the background investiga- tions required; • the responsiveness of the applicant in providing supplemental information; • the availability and workload of the state’s regula- tory staff; and • whether or not the application raises any suitability concerns that require additional review. For example, Nevada laws do not provide a deadline for licence application submissions, but in practice the application process of a non-restricted operator licence involves a comprehensive background check that can take nine months to more than a year. 4.8 Application Fees Application fees vary significantly across states and depend on the type of licence and scope of opera- tions. For example, in Nevada the initial application fee for operating interactive gaming is USD500,000, and in New Jersey the initial application fee is USD100,000. 4.9 Ongoing Annual Fees Most states require licensed operators and suppliers to pay ongoing annual fees to maintain their authori- sation. The amount and structure vary by state and
licence type. Some states charge a flat annual renew- al fee, while others impose graduated fees or taxes based on revenue. 4.10 Personal Licensing Individuals involved in the management, control, or operation of gambling businesses in the USA are generally required to obtain personal authorisations or licences from state gaming authorities. Licensing triggers when a person holds a substantial ownership interest, exercises managerial authority, or performs key operational duties such as compliance, finance, or gaming supervision. The application process typically involves detailed personal disclosure and a background investigation, including criminal, financial, and tax record checks. Applicants must demonstrate honesty, integrity, good character, and financial responsibility. In most states, the process includes fingerprinting, sworn personal history forms, and interviews conducted by the state’s gaming control board. Fees and timescales vary by jurisdiction. For instance, personal key employee licences in New Jersey require a USD750 application fee plus an investigation fee of up to USD4,000 (NJ Admin Code 13:69A-9.11) and the registration generally lasts indefinitely unless the person left the industry for three years (NJ Admin Code 13:69A-7.1C), while in Nevada, the Nevada Gaming Control Board charges a licence fee ranging from USD500 to USD1,000 depending on the type of licence, plus an investigation fee, and the review is generally completed within nine months (Nevada Revised Statutes, Section 463.210).
5. Land-Based Gambling 5.1 Premises Licensing
The types of physical premises authorised for gam- bling in the USA differ by state law. Geographic limita- tions on licensure take on several forms in the various states. For example, in Nevada, a “restricted” licence is required for operators in taverns with less than 15 slot
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