How to Get a Sports Betting License: Step-by-Step
Whether you are planning to enter the sports betting market or expanding to new markets, having a valid sports betting license is a critical obligation. A valid license helps you ensure legal compliance, establish trust in the market, and build quality partnerships. Now, the road to getting a license can be a tough one, but with the right guidance, you can acquire it easily.
Share at:
Table of Contents
Keeping up with the rising sports betting market, operators across the world are stepping into new markets and arenas to expand their revenue streams. But, with varying regulations in every market or jurisdiction, it becomes important to acquire a valid license.
In this blog, we will highlight how to get a sports betting license. The blog will primarily focus on the US and the EU markets, including costs, processes, requirements, and more.
Why Does an Online Sports Betting License Matter?
A sports betting platform handles a lot of sensitive user data, and only users of a certain age can engage in gambling. To ensure that there are no issues in the future, a gambling license matters. Here are some more reasons for the same.
Establishes Legal Legitimacy
Without a valid license, operators expose themselves to serious risks that include regulatory fines, forced shutdowns, or even criminal sanctions. Regulators worldwide are increasing enforcement to ensure absolute safety and security of the bettors. Here is an example of why a license is critical.
In the UK in 2020, the UK Gambling Commission (UKGC) issued a £13 million fine to a major online gaming operator for failing to implement adequate anti-money laundering (AML) measures.
Holding a proper license signals to authorities that you have established and implemented your business in accordance with applicable betting license regulations. This covers
- Ownership transparency
- Financial soundness
- Software integrity
- Responsible gambling safeguards
In an abstract, legal compliance isn’t optional.
Opens Up Infrastructure Access For Business Essentials
With a valid license, operators can have access to infrastructure their business needs to work properly in the modern betting ecosystem. There are several elements under this, such as
- Payment processors and banks typically won’t work with unlicensed operators due to regulatory and AML risk.
- Player trust depends on visible legitimacy. When players see you are regulated, they’re far more comfortable depositing and sticking around.
- You’ll need to show that you meet standards around fair play, customer protections, secure platform technology, dispute resolution, etc. All of these are often mandated by licensing regimes.
Enables Market Access & Growth Potential
Licenses are also the key to opening doors to jurisdictions and scaling your business.
- In many markets you are not allowed to operate without a license. Trying to enter a jurisdiction without one will shut you out.
- The quality or reputation of the license matters. A license from a highly regulated jurisdiction (with strict oversight) will make it easier to form partnerships and attract investment. From a marketing perspective, it reassures players & regulators.
- Using your license as a base, you may then expand into adjacent markets (depending on local laws) more easily than unlicensed operators.
As an example, grey-market operators often exploit jurisdictions with minimal oversight, but they face higher risk, less access to banking/payment networks, and limited player trust. Betsson’s BML Group was fined $2.6 million for illegal marketing in Finland, clearly stating that lack of a local license can hamper access & carry significant risk.
Differing License Types
Having a license matters, but more important for operators is to have the right license (especially those working across verticals). This matters because
- A license for casino games may not automatically cover sports betting (and vice versa).
- Regulatory regimes will often distinguish between “sports betting license,” “casino gaming license,” and “lottery license,” each with their own conditions (taxation, operation model, advertising rules, etc.).
- If you apply for the wrong license, you may be forced to restrict your product offering or even reapply under a more appropriate license, or face penalties for operating outside your license’s scope.
Note: As a part of your licensing strategy, you must define your business model (sports betting only? sportsbook & casino combined?) and match it with the correct license type.
US vs EU Licensing Landscape | Overview
In this blog, we will cover the US and EU market. Both US and EU markets have areas that allow and don’t allow gambling. Here is an overview of both.
The US Sports Betting Licensing Landscape
In the US, the process of obtaining a sportsbook license is managed at the state level rather than by a unified federal framework.
For an online betting platform to legally operate in a state, an operator typically must
- Apply for a license for sports betting
- Meet strict background checks
- Pay substantial fees
- Abide by the state’s regulatory regime
This fragmented structure means each state has distinct rules around ownership, geolocation, age limits, & integration with land-based venues. Moreover, each state also has a designated authority, such as
- For New Jersey: The New Jersey Division of Gaming Enforcement (NJDGE)
- For Pennsylvania: The Pennsylvania Gaming Control Board (PGCB)
- For Michigan: The Michigan Gaming Control Board (MGCB)
And others. These boards oversee the licensing process and ongoing compliance for the respective states.
The sports betting license benefits in the US market include
- Access to regulated player pools
- Connection to state-approved banking/payment infrastructure
- Marketing legitimacy in that state
And more. The sports betting license cost in the US varies from $10,000 to $1 million, depending on the state, types of gambling allowed, & type of license.
The EU Sports Betting Licensing Landscape
In Europe, the framework for obtaining a sportsbook license is managed at the national level rather than via a single unified EU license. Each member state of the EU regulates how an online betting platform or other betting-service provider must apply for, and maintain, its license for betting.
Operators are required to secure a valid sports betting license from the relevant national regulator (for example, the Autorité Nationale des Jeux in France) and may then offer services within that jurisdiction.
Over recent years, many countries have moved from monopoly or exclusive rights models to open-licensing regimes. For instance, 27 out of 31 European countries now use some form of multi-licensing for online gambling, including sports betting. This model allows multiple companies to offer online gambling services within a country.
On the other hand, 4 countries currently do not have any form of multi-licensing. These are
- Finland
- Iceland
- Norway
- Luxembourg
While the first three maintain exclusive rights models, granting state-owned entities a monopoly over all online gambling services, Luxembourg lacks dedicated regulations for online gambling.
When the operator considers getting a license for sportsbook software development, they can reap a number of benefits.
- Access to regulated markets in the specific country, with legal recognition & player trust.
- Ability to integrate with national payment systems & banking infrastructure under license-approved status.
- Eligibility to advertise, promote & build operations under regulated supervision.
- Opportunity for cross-border growth, where a license in one jurisdiction may allow services or partnerships in others if national rules permit.
Despite these benefits, each country retains autonomy and the exact terms vary significantly. These include application fees, tax rates, product scope (sports only vs casino vs poker), localization requirements, and ongoing compliance obligations, all differ from country to country.
Step-by-Step Sports Betting License Process
The process to obtain an online sports betting license is a bit detailed. As the requirements of the US and EU vary a lot, you must be careful with every little detail.
Step 1. Decide Business Model and Target Market
First, decide which jurisdictions you plan to serve. Multiple U.S. states (each with its own rules) or select EU countries with national regulation.
Next, define your offering clearly. Will you focus on fixed-odds sports betting, in-play/live betting, a mobile app, or integrate a casino component? (Some licenses cover only specific types of games.)
Also, determine if you’re operating B2C (serving players directly) or B2B (providing software/white-label). License requirements vary accordingly. For U.S. states you must factor in geolocation, minimum age, and often a land-based partner. In the EU, you will need to account for local language, tax rules, advertising limits and whether a local entity is required.
Step 2. Choose Jurisdiction/State
When planning your license application, selecting the right geographic jurisdictions is pivotal.
- US: Identify which states you wish to operate in first and review each state’s licensing requirements, costs, and timelines. States may differ on application fees, tax structures, geolocation mandates, & partner-requirements with land-based casinos.
You can check out the state-by-state application fees and tax structures here.
- EU: Compare EU jurisdictions (for example, Malta Gaming Authority, Gibraltar, Isle of Man or individual EU countries) based on cost of sports betting license, approval speed, tax regime (e.g., gross gaming revenue vs. turnover), reputation & banking access. The approved timelines in the EU are typically around 4 to 9 months, depending on the country.
Besides these, also consider other strategic factors, such as
- Initial license fee plus annual renewal fees
- Tax on GGR/turnover
- Jurisdictional reputation
- Time to market
By aligning your business objectives with a jurisdiction whose regulatory regime matches your offering and budget, you set the foundation for smoother entry and future expansion.
Step 3. Set Up Legal Entity and Corporate Structure
Before you can figure out how to get a sports betting license online, you must first establish a proper legal company in the jurisdiction where you intend to operate.
In the U.S., each state regulates sports betting independently. Any operator for an online or mobile platform typically must form a legal entity that meets state licensing requirements. This might include having a registered business in the state or partnering with a land-based casino.
Some states require the operator to have a physical presence or a state-licensed partner. For example, states like Michigan allow online sports betting only if it is affiliated with a commercial casino or tribal casino.
However, in the EU, regulators typically mandate that your entity is incorporated locally (or at least has a registered office), opens a local bank account, and shows the required financial reserves.
Establishing the correct corporate structure from the beginning is an important step toward obtaining your license for sports betting, ensuring you’re eligible when submitting the application.
Step 4: Prepare Your Compliance & Operational Framework
Compliance is necessary to run a sports betting business. Therefore, you must build and document robust systems covering
- KYC (Know Your Customer)
- AML (Anti-Money Laundering)
- Responsible gambling (self-exclusion, deposit limits)
- Data protection
And more. In the US, state regulators will scrutinize your compliance plan, technological integrity (geolocation, age verification), & payment processing controls.
In the EU, compliance must align with national gambling laws & overarching EU directives. For example, the new AML package that includes the 6th AML Directive tightens due-diligence, beneficial-ownership & transaction-monitoring obligations for online sports betting operators.
You will also need systems for fair play, odds integrity, security, player fund segregation and auditing. This operational framework is central to meeting regulator expectations and unlocking the full sports betting license benefits when obtaining a sportsbook license.
Step 5. Prepare Application Package & Documentation
In the US, each state has its own application requirements when applying for a license for sports betting. For example, the Colorado Division of Gaming’s “Sports Betting Business License Application” checklist requires
- A completed application form
- Identification documents
- Criminal-history dispositions
- Additional supporting materials
You will also typically need to disclose the list of beneficial owners, provide detailed financial statements and projections, background checks for major shareholders/operators, and describe your platform and software provider.
In the EU, operators must submit detailed documentation to the national regulator in the chosen jurisdiction. Requirements generally include
- A company business plan
- Financial statements
- Proof of funds/capital
- List of owners/beneficial owners
- Software certification
- Technical audit reports
- Local bank account details
Each country retains autonomy and has specific additional standards around fitness and proper checks, local entity registration and compliance with national laws.
Note: Preparing the application package thoroughly & accurately is essential to avoid delays or rejection and to realize the sports betting license benefits of legal market access, credibility, and partnership opportunities.
Step 6. Submit Application & Pay Fees
Once your license application package is complete, submit it to the regulator in your target jurisdiction with all required attachments. Moreover, you will need to pay both the non-refundable application fee & the initial/annual license fee, which can vary widely.
- For the US: License fees differ greatly by state. For example, in Arizona, the initial online sports betting license fee is $750,000 with a renewal of $150,000 annually.
- For the EU: In jurisdictions like the Malta Gaming Authority, the one-time license fee is around €25,000, with a fixed annual license fee also around €25,000.
Important strategic note: When planning how much a sports gambling license is, factor in renewal fees, taxes, & ongoing compliance costs, not just the initial fee. Ensure that these payments are made correctly & on time to secure your sports betting license benefits & maintain your legally authorized operations.
Step 7. Wait for Review & Approval
Once you have successfully submitted your full application and paid the necessary fees, the formal regulatory review begins. The regulator will examine your documentation, conduct background checks, & carry out technical audits of your software/platform to verify you meet the standards for a license for sports betting.
- US: In many states, the review timeline for an online betting platform license runs from about 6 to 12 months (sometimes more) depending on the state’s workload, complexity of the application, & completeness of the documentation.
- EU: In European jurisdictions, the review often takes around 4 to 9 months, although it can be shorter or longer depending on how closely you align with regulatory expectations and how prepared your submission is.
Step 8. Launch & Ongoing Compliance
Once your license for sports betting is approved, you may legally begin accepting bets in the jurisdictions you’re authorized for. However, launching is just the beginning. You then have to abide by some ongoing compliance obligations to retain your license and enjoy the full sports betting license benefits.
Key Ongoing Obligations
- Regular reporting: Submit periodic financial, operational & player-activity reports to the regulator.
- Audits & system checks: Participate in regulatory audits, technical system checks, integrity monitoring & software updates.
- Responsible gambling & player protection: Maintain self-exclusion schemes, deposit limits, KYC/AML monitoring, age verification & safeguard player funds.
- Advertising & product scope compliance: Ensure marketing activities align with regulatory rules (e.g., no marketing to minors) and stay within the authorized product types.
- Change notification: Report material changes (ownership, software vendor, business model) to the regulator.
Failing to meet these obligations can result in enforcement actions such as fines, license suspension, or revocation. As an example, the New Jersey Division of Gaming Enforcement (DGE) fined William Hill Sportsbook US $20,000 after finding that the operator accepted wagers on events that had already ended. The actions taken by the NJ division served as an example of how after launch, operators must maintain strict control over their platforms (in this case, event timing, odds integrity) as part of ongoing compliance.
Once you are established in one state or country, you can expand to additional states as your business grows (each with a separate license). Besides the license, you may also have to consider strategic scaling, cost vs. market size, local advertising, multi-jurisdiction technology stack, etc.
Sports Betting License Cost & Taxes
When exploring how to get a sports betting license online, it’s crucial to understand both the costs of the license and how much are sports betting taxes the operators face.
United States
In the United States, the license and application fees vary sharply by state. For instance, the fees can range from US $50,000 up to US $10 million depending on the state.
Tax rates on gross or adjusted gaming revenue (GGR/AGR) also differ. For example, state tax rates range from around 6% to over 50% depending on the jurisdiction. Here is a tabular representation of the top 5 states, their license cost, and the taxes involved.
| State | License Cost | Effective Taxes |
| Pennsylvania | $10,000,000 | 24.6% |
| Massachusetts | $5,000,000 | 19.4% |
| North Carolina | $1,000,000 | 18% |
| Louisiana | $750,000 | 10% |
| Arizona | $750,000 | 6.8% |
Note: States like Delaware, New Hampshire, and New York have taxes over 40% in the US.
EU
In EU jurisdictions, the cost of obtaining a license may start with application fees that range from €2,000 to €6,000. Besides this, there are annual license fees and taxes. Here is a tabular representation of both.
| Country | Approx. License Cost | Taxes |
| Malta | €25,000 to €40,000 | 5% GGR |
| Spain | €80,000+ | 20% GGR |
| Germany | €70,000+ | 5.3% turnover tax |
| France | €60,000+ | 33% GGR |
| Italy | €80,000+ | Variable |
Note: Taxation on operator revenue can vary. Recent data show many jurisdictions increasing GGR tax ratesto around 15 to 20% or more.
Practical Tips & Best Practices To Follow While Applying For a Sports Betting License
If you are new to the iGaming world and want to invest in sports betting platform development, the process can be overwhelming for you. But, to make it easy for yourself, you can follow the mentioned tips & best practices. These will simplify the sports betting license process to a great extent.
- Engage expert legal counsel early. The licensing process is complex, and mistakes are costly. TRUEiGTECH can help you perfectly guide through the licensing process.
- Choose your initial market carefully. Consider starting with a smaller U.S. state or a less-stringent EU jurisdiction to gain experience.
- Invest in a robust tech stack that supports scalability across jurisdictions (multi-jurisdiction geolocation, multi-currency, multi-language).
- Build your brand trust. Holding a license from a reputable regulator enhances payment partners, credibility & player confidence.
- Stay vigilant on regulatory changes, especially in U.S. states where laws evolve rapidly.
- Monitor your ongoing obligations (audits, reporting, player protection).
- Factor in all costs. Not just the application fee, but also annual license/renewal fees, taxes, compliance costs, and local-office/representative costs should also be factored in.
- Use the license as a marketing point. Legitimacy builds player confidence and smoother payment partnerships.
Conclusion
If you want to excel in the sports betting market, a valid license is an indispensable asset. Besides basic operations, a valid sports betting license can be a way to expand into a new market, satisfy compliance needs, and build trust in the market. Now, if you have read so far, you may realize how challenging the process of getting a betting license can be. To make the process easy, TRUEiGTECH can assist you.
With over 7 years of professional experience in the iGaming market, TRUEiGTECH can make acquiring a valid license easier for you. Our team has a proper understanding of the sports betting market of the US and EU and its compliance needs. Whether it is localization or ongoing obligations, we can assist you with everything before, during, and after the process. Contact us to get your consultation today.
FAQs
You must select a jurisdiction, set up a legal entity, compile documentation (owners, business plan, financials), comply with regulatory requirements (KYC/AML), submit your application, & pay the fees.
Prepare the full application package, submit it to the regulator, and pay the required non-refundable application fee. The application package includes
- Business plan
- Proof of funds
- Tech-audit report
Yes, regulatory regimes in the US & EU allow operators to obtain a license for sports betting, provided they meet jurisdictional criteria and compliance standards.
In the US, apply state-by-state via that state’s regulator. In the EU, apply to a national regulator after selecting jurisdiction, forming an entity, & fulfilling regulatory prerequisites.
Application/license fees
- US states: $100k to $10 million
- EU jurisdictions: €25k, plus annual fees
Depending on jurisdiction and application completeness,
- US: Typically 6 to 12 months
- EU: Generally 4 to 9 months
US: No, each state requires its own license.EU: Usually no. Each country issues separate licenses, though some jurisdictions offer broader market access under favorable conditions.
B2C operators serve players and require full licenses. B2B software/white-label providers often seek provider/regulator approval rather than a full operator license.
- Systems for KYC/AML
- Responsible gambling
- Geolocation (US)
- Data protection (EU/GDPR)
- Odds integrity
- Player fund segregation
- Audit logs
- Platform security
You risk regulators imposing heavy fines, revoking or suspending operations, losing payment-processor access & suffering reputational damage.
Written by: Prish K
Prish K, Head of Marketing at TRUEiGTECH, holds an experience of more than 10 years in the iGaming domain. Starting from strategic planning and digital marketing to team leadership and cross-functional collaboration, he is a master of his domains. For more than a decade, he has shown a promising commitment to fostering result-driven and creative work outputs. Beyond guiding newcomers and established iGaming operators with the right software solutions for their business needs, Prish also wants to share his industry expertise and knowledge through insightful blogs and articles
