Introduction
Crafting a winning a sports betting license application is a time-consuming, costly, and competitive process. Being licensed is a prerequisite for legally engaging in sports betting activities within authorized states, and often, the number of available licenses is limited. These licenses allow you to offer sports wagering and operate a multi-million dollar business. Their considerable value underscores the competitiveness of the licensure process.
For this reason, our sports betting license consultants created this comprehensive guide that walks you through the process of preparing a winning sports betting license application, including:
Essential Documents for a Winning Sports Betting License Application
Each state will have their own requirements for the documents you must submit as part of your sports betting license application. However, in general, the required documents are similar in nature across states.
For instance, a successful sports betting license application entails submitting technical narratives that encompass three key categories:
- Proposed Operations
- Internet/Mobile Platform
- Reserves, Credit, and Wagering
Below is a list of the types of narratives you must write as part of your sports betting license application.
Proposed Operations:
- Employment Plans
- Plans to Positively Impact the Local Government
- Vendor Diversity Plans
- Internal Controls
- Accounting of Wagering Activity
- Providing Regulators with Real-Time Access to Data
- Reporting Suspicious Activity
- Preventing and Detecting Prohibited Wagering Activity
- Marketing Plans
- Plans to Remain Competitive
- Economic Development and Community Engagement Plans
- Diversity Plans
- Fundraising Plans
- Self Exclusion Program
- Details on the facility (if hosting in-person sports betting), including security, surveillance, accessibility, wagering kiosks, etc.
Reserves, Credit, and Wagering
- Information on the required reserves of the sports wagering operation, including cash reserves, ensuring redemptions or refunds, guarantees, etc.
- Extending credit to patrons, including maximum credit and front money accounts
- Layoff Bets
- Betting Line
- Sports Wagers and Parlay Card Wager, including minimum and maximum bets, payout limits, wager restrictions, bet tickets, etc.
- House Rules
Internet/Mobile Platform
- Details about the platform
- Architecture of proposed platform, including include specifics regarding firmware, software programs, servers, firewalls, storage facilities, levels of access including physical access to the site(s), virtual access, on-line access, and proposed methods to provide for the protection of all data.
- Branding
- ID and Age Verification
- Integrity and Confidentiality of All player communication,
- Secure Methods of Transfer
- Golocation
- Assistance with Gambling Problems
As you can tell, crafting a winning sports betting license application requires detailed explanations regarding every aspect of your business. Your application can reach hundreds or thousands of pages of written information. For this reason, companies work with our sports betting license consultants to prepare a competitive application.
Technical Tips
To prepare a winning sports betting license application, you must demonstrate technical competence through the material you provide in the required documents above. You must discuss the technical aspects of your proposed sports betting business, and how you will comply with the laws and regulations.
Be as detailed as possible. You should be clear and concise in your communication, but also be precise in describing your technical infrastructure. Use the actual names of products and services, and include images and infographics that support your narratives. Remember that humans are the ones reading and scoring your application. If you want your sports betting license application to win you a license, you must present your plans in the best light, and this includes imagery and easy to understand language.
Strategic Insights That Lead to Winning Sports Betting License Applications
Now let’s examine some of the strategic components that help with preparing a winning sports betting license application. There are three categories in which a winning strategy falls: Compliance, Local Support, and Appealing to the Market.
Compliance
Perhaps the most important aspect of your sports betting license application is compliance with the market’s laws and regulations. The regulators want to know that you will comply with their regulations, and you can demonstrate this through your technical narratives describing your plans. Similarly, the state is looking for operators who will conduct responsible gambling and enforce policies that support this.
To most effectively demonstrate compliance, reference the laws and regulations in your narratives as you describe your plans.
Local Support
Another important strategy for a winning sports wagering license application is showing support from and your involvement in the local community. This includes at the state, county, and municipal level. Many sports betting operators are from out of state, and the regulators want to know how you will involve the locals.
For instance, are you partnering with any local sports organizations or facilities? What about partnerships with local casinos and race tracks to offer in person sports wagering? In fact, in some states, such as Kentucky, you are required to partner with a local race track if you plan to offer sports betting. In contrast, partnering with a sports facility in North Carolina is not a requirement, however, it will likely help you score higher on your application.
Also, how much revenue will you generate for the state? In some markets, you can choose the amount of revenue you will pay to the state. The more money you can give to the state, the more incentives they have to license you.
Appealing to the Market
How will your sports betting platform appeal to the market? How can the regulators be sure that people will use your platform? A winning sports betting license application demonstrates that you understand the customer demographics and have developed innovative engagement strategies to remain competitive.
Conclusion
Putting together a winning sports betting license application is pivotal for legal operations, but the process is fiercely competitive. As demonstrated above, our guide details the required documents, technical finesse, and strategic insights necessary to succeed.
Beyond technical aspects, compliance with regulations, local support partnerships, and innovative market strategies differentiate a triumphant application. You are now equipped to craft a standout application, combining compliance, technical excellence, and strategic vision for a compelling case that sets you on the path to win a sports betting business license.
However, if you still have questions or would like to work with our sports betting consultants to prepare a winning strategy, please schedule a free consultation.
