Gaming Law: How Do You License Casinos, Sports Betting, and Igaming?

Gaming law covers casino licensing and operation, sports betting (retail and online), iGaming (online casino, poker), daily fantasy sports (DFS), tribal Class II/III gaming, lottery regulation, charitable gaming, sweepstakes, esports wagering, pari-mutuel horse racing, and emerging areas (skill-based gaming, prediction markets, NFT/blockchain gaming). Most gaming and leisure work spans licensing applications, regulatory investigations, M&A transactions, technology compliance, and dispute resolution.

Gaming law enforcement involves layered regulators: state gaming control boards (Nevada Gaming Control Board, New Jersey DGE, Pennsylvania Gaming Control Board), federal agencies (FinCEN for AML/BSA, DOJ for criminal enforcement under Wire Act and IGBA, IRS for tax withholding), tribal gaming commissions (under IGRA), and SROs. Most disputes proceed through gaming litigation channels including administrative hearings, judicial review under state APAs, and federal court actions on constitutional and preemption grounds.

Casino licensing under gaming law requires applicants to demonstrate good character, honesty, integrity, financial responsibility, business experience, and source of funds, with background investigations covering officers, directors, key employees, and ownership holders (often down to 5% beneficial owners). Most jurisdictions impose casino regulations requiring approval of all material vendors, software suppliers, and management contractors, alongside surveillance/internal control standards (MICS), responsible gaming programs, and annual audits by gaming auditors.

Murphy v. NCAA (2018) struck down PASPA as unconstitutional commandeering under the Tenth Amendment, freeing states to authorize sports betting under their own gaming law regimes. By 2026, 38+ states plus DC and Puerto Rico authorize sports betting; the Wire Act now reaches only sports-related interstate wire transmissions following the First Circuit's 2021 decision. Operators face ongoing gambling crime exposure for unauthorized cross-border sports betting, illegal bookmaking, and operating without state licensure.

Casinos and card clubs above $1M annual gross revenue are "financial institutions" under the Bank Secrecy Act, requiring AML program (compliance officer, written procedures, training, independent testing), Currency Transaction Reports (CTRs) over $10K, SARs, customer identification (CIP), and transaction monitoring. Violations trigger gambling fines and penalties including FinCEN civil penalties (often millions of dollars), criminal exposure under 31 U.S.C. § 5324 (structuring) and § 5322 (willful violations), and state sanctions including license revocation.

Responsible gaming standards include self-exclusion programs (state-administered registries excluding players for fixed periods or life), problem gambling resources (1-800-GAMBLER, mandatory disclosures), marketing limits (no inducements to self-excluded players, no targeting minors), and operator obligations to identify at-risk patrons. Standards from hotel casino regulations often integrate with state requirements, with AGA Code of Conduct, NCPG standards, and state regulations (Pennsylvania, Massachusetts) imposing detailed operational requirements.

IGRA (25 U.S.C. § 2701 et seq.) establishes three classes: Class I (traditional/social tribal gaming, exclusive tribal regulation), Class II (bingo, non-banking card games, regulated by tribes and NIGC), and Class III (commercial casino gaming including slots and house-banked games, requiring tribal-state compacts). Most tribal law gaming disputes involve compact negotiations, revenue sharing (25-30% to states under Class III), good-faith negotiation litigation, and constitutional challenges to state authority over reservation gaming.

Daily fantasy sports (DFS) operate under UIGEA's carve-out (31 U.S.C. § 5362(1)(E)(ix)) for skill-based contests where prizes are predetermined and outcomes reflect knowledge of multiple real-world athletes' performance, with ~45 states authorizing or tolerating DFS subject to consumer protection. Esports under esports law face complex regulation involving player contracts, tournament integrity, age-based participation limits, in-game wagering, and the contentious loot box question, with several states and foreign jurisdictions (Belgium, Netherlands) treating loot boxes as gambling.