Affiliates: Why You Need To Prepare for Nevada Licensing
Will gaming license requirements for affiliate partners throw a wet towel on intrastate online poker in the US? That’s the gist of a recent article titled, Poker Affiliates In Line For U.S. Licensing Scrutiny by James Kilsby that recently appeared on GamblingCompliance.com. The big question for affiliates is under what circumstances would a license actually be required.
According to Kilby’s report, the Nevada Gaming Control Board (NGCB) is including marketing affiliates in the groups that will be licensed in the state. This comes from a draft definition of Interactive Services the NGCB posted recently.
The NGCB divides the type of services provided by interactive services providers into six categories, two of which are specifically defines as affiliate marketing:
Interactive Service provider means a person who acts on behalf of an establishment licensed to operate interactive gaming and…(4) Provides the trademarks, trade names, service marks or similar intellectual property under which an establishment licensed to operate interactive gaming identifies its interactive gaming system to patrons.*
(5) Provides information regarding persons to an establishment licensed to operate interactive gaming via a database or customer list*
Affiliates who do require a license will need to plunk down $3,000 and a wealth of personal and financial information to get through the notoriously rigorous process.
But before hitting the panic button, affiliates should note that there’s still a great deal of uncertainty about whether small affiliate partners will actually need the license or not.
The CPA Loophole
Kilsby points out that Nevada has always licensed entities that take a percentage of gambling revenues. So the big question becomes whether or not CPA programs would require a gaming license. (And there’s plenty of folks who think that big gaming companies will be paying affiliates through CPA and not a revenue share.)
Preparing for Regulation
The State of Nevada has long set the standard for gaming law in the US, so whatever the NGCB does here will likely, but not necessarily, be replicated everywhere. That means affiliate partners should be prepared for anything.
CAP founder Warren Jolly and Professor I. Nelson Rose addressed these issues in a recent webinar titled Preparing for US iGaming Regulation: A Legal Overview &Vital Practices.
Jolly points out that the regulatory writing has been on the wall for quite some time now. He suggests that affiliate partners looking to do business in the Silver State start preparing now or, better yet, a few years ago.
Any serious affiliate has been spending the time between Black Firday and now researching and preparing for the opportunity (legal intrastate poker).
No one knows for certain what types of changes are really ahead as intrastate online poker goes like in Nevada.
Affiliate partners who have prepared for everything are the only ones who will be ready for anything.
Do you think that affiliates are going to need Nevada gaming licenses? Share your thoughts on our Online Gambling Laws and Regulations Forum.