Sports betting in the US is moving so fast, suppliers need to be pursuing both their commercial agreements and licensure simultaneously.
We’re already seeing large, enterprise-level agreements being put in place in addition to agreements between individual casinos and various suppliers.
Furthermore, each state will determine through regulation how many opportunities are sustainable for the sponsoring casinos, so time is truly of the essence.
Regulators have been understanding about the fluidity of commercial agreements and are willing to engage with suppliers without settled deals in place.
Furthermore, the licensing process is quite lengthy, so suppliers should start compiling the necessary information and seeking initial meetings with regulators while commercial negotiations are underway.
With some strategic planning, a supplier will have their licence in hand shortly after securing their commercial deal to allowing them to hit the ground running once the deals are finalised.
Where should I apply for the Sports betting licence?
Right now, there are a handful of states currently accepting applications for sport betting operations.
Choosing a state is in part determined by the market you identify as ideal for your business.
Each state has different populations and different casinos already operating and different socioeconomic factors that a supplier should consider.
Each state also has its own application fees and tax rates, which will certainly drive the decisions for some suppliers and sportsbooks.
New Jersey and Pennsylvania, for example, have very robust and thorough licensing applications.
So if a supplier starts in one of those states, it should help them streamline their efforts in additional states.
With so many different types of casino, not to mention tax rates in different states, what should I look for in my deals with casinos?
Land-based casinos will likely continue to be a required partner for online operators and other suppliers across the US.
But this does not mean all commercial agreements with casinos will be the same.
The first thing will be how the casino and supplier will share financial responsibility for licensing and regulatory fees.
The casinos have their own fees to contend with and will likely be looking to share those costs with suppliers.
Next, suppliers need to consider revenue obligations, including the share to the casinos and annual minimum obligations.
Another major question has been exclusivity, as suppliers seek multiple partnerships.
There’s no one right answer to these questions, but each agreement should be tailored appropriately
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