Affiliates understand that legal iGaming in the United States is only a matter of time. Due to the slow nature of the legalization process, there has been plenty of time to prepare for the regulated market. One smart move to make in anticipation of the legal U.S. market is to become a corporation.

Benefits of Becoming a Corporation

Here are a few of the important reasons why an affiliate might be motivated to turn their business into a corporation:

  • Limited liability. The main advantage to becoming a corporation is that owners’ personal assets cannot be pursued to cover liabilities incurred by the business.
  • Tax breaks. Corporations enjoy certain preferential treatments in the tax code. They are not subject to paying self-employment taxes which means no money going to Social Security and Medicare. An account can further expound upon the tax benefits to becoming a corporation.
  • Business credibility. Doing business behind the curtain of a corporation lends credibility and authority to your operation. U.S. casino outfits will be much more likely to establish advertising deals with you when acting on behalf of a corporation rather than your individual self.

Watch: Preparing for U.S. Regulation Webinar available free to CAP newsletter subscribers.

Appeasing the Overlords

Regulated U.S. iGaming is going to be just that, regulated. As such, affiliates need to prepare for a process of due diligence in order to be green-lit for partnerships with U.S. casino outfits. Expect regulators to take interest in your U.S. and non-U.S. activities alike.

Any past profiteering from the unregulated U.S. market is going to look bad. Start doing what you can now to separate your business from any activities involving advertising for unregulated iGaming sites to Americans. The DOJ is always hungry for revenue and may try to levy penalties on any profits from past U.S. operations.

Non-U.S. activities that may look disconcerting to regulators include working in countries like Turkey or Israel where the legal nature of iGaming is questionable.

Creating Credibility

If you’re an individual running an affiliate business, it’s going to be harder to acquire advertising deals in the U.S. States and gaming commissions want to see that you are a real business. Thankfully, becoming a corporation is easy and not very expensive. It provides your operation legitimacy and substance in the eyes of regulators.

It’s also important to think like a blue chip organization by keeping financial documents up to date. States are going to want to take a look at what type of revenues you have been generating from your activities. Your financial documents should be organized sufficiently enough to undergo an audit at any time.

Finally, have a plan in place to present to regulators for which marketing methods you intend to implement going forward. Will you be doing any offline promotions? These things will be taken into account when you’re looking to get a license as an affiliate.


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