Putting your best foot forward

As more and more states are flipping the ‘on’ switch for regulated sports betting, the exposure and interaction operators, suppliers, and vendors have to US regulatory agencies is obviously increasing as well. And while every regulatory agency is unique, there are some keys to ensuring your business is putting its best foot forward with its future government partners.

Forget the “us versus them” mentality

The definition of “enemy” is a person who is actively opposed or hostile to someone. This is the exact opposite of what regulators are trying to do, so stop treating them like the enemy. Regulatory agencies and the authorizations they dole out are the keys to your market entry, thus working with regulators so you understand their needs and they understand your product, processes, and procedures is important.

Ignoring requirements because they are difficult, different, or will tie up development time won’t accomplish what you hope. Not only will this be a roadblock in the jurisdiction you’re facing at the time, but chances are that difficult requirement will be something you face in one or more future jurisdictions as well. So spending the time to resolve the matter upfront – either by developing a fix or working with the regulator for a sensible solution – will be well worth the investment longer term.

Your first impression shouldn’t be on paper

Everyone cringes at the site of the Multi-Jurisdictional Personal History Disclosure (MJPHD) or business disclosure form. These forms are critical and the hard work of completing these should begin ASAP (more on that below) but it’s important not to get lost in the paperwork. Your business is about so much more than the financial disclosures, licensing history, contractual partners, and the other details required in the forms. Your business is about the interesting products and experiences you create, the people who help create them and the compelling plans ahead.

And the best way to introduce regulators to all your hard work and passion is to walk them through it face-to-face. “Post-Covid” these opportunities come in more shapes and sizes and can potentially be more cost effective as state agencies are now as comfortable hosting video conferences as pre-Covid in-person meetings.

Organization is a sign of respect

Back to the applications…the information on the pages is important but how its presented can be just as important. Providing organized responses with consistency across answers will help regulatory agencies complete their review more expeditiously. Unorganized, incomplete submissions requiring amendments or revisions only lead to delays and frustration on your part and the part of the agency analysts reviewing your applications.

There are some easy organizational wins all license applicants should consider:

1. Read the instructions: make sure to answer every question and label documents as called for in the instructions

2. Be consistent: use the same verbiage across questions, across documents, across applicants

3. Keep a record: maintain organized and complete copies of final submissions, if regulators have follow up enquiries you want to make sure you are accurately responding to information in front of them

4. Consider software: utilizing licensing and compliance software solutions that can streamline responses and provide consistency across jurisdictions, entities, and individuals can provide a clean, harmonized look to your application submissions.

Speak with one voice

Giving regulatory agencies consistency in who their point of contact should be will help streamline issues early on and avoid unnecessary delays or missed and/or mixed messages. Each organization will manage this differently – either a single point of contact for all regulatory facing matters, or business unit specific points of contact. The key is ensuring you provide regulators with clarity on who to call regarding questions, issues, or feedback.

The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. 

Eric Frank is the founder of EDF Compliance, LLC, a compliance consulting company for the gaming industry and beyond. Frank served as global group compliance officer for The Stars Group, one of the world’s largest online gaming operators. He has unique expertise navigating complex compliance and regulatory matters throughout the world. He has managed global compliance teams with responsibilities in 20+ licensed markets worldwide and served as the principal legal advisor for regulatory, licensing, and compliance matters in the US, Latin America and Asia. Frank also has over a decade of experience in private practice at one of the world’s largest law firms, advising gaming clients on a full range of regulatory and licensing matters, and in government at all levels – federal, state and international – drafting statutes and regulations and advising on policy.