The licence lowdown: which states are worth it for affiliates?

It has been apparent that the licensing process for affiliates, suppliers, and operators has vastly advanced from state to state in the US in the last 10 years. With regulations changing, updates being made, and further guidelines being published, affiliates may seek guidance on where best to go next as it is difficult to predict where the most commercial markets will be and if the responsible gambling and social responsibility status quo will be maintained either.

The requirements can materially vary in the US as online betting and casinos are regulated on a state-by-state basis. Affiliates promoting sportsbooks and/or casinos often need to be registered or licensed, depending on the state and the commercial rewards, which can be inter alia revenue share, CPA, or flat fee (as most will be aware affiliates have been nothing if not inventive over the years in devising the measures by which they should be paid). 

Some states only require licensing if affiliates are paid on a revenue share or CPA model. If paid on a flat media buy, registration may not be required or warranted. Licensing often means background checks, fees, and ongoing compliance, which can involve an in-depth application process. Regulators are notoriously cautious about following the roots of risk/reward relationships because of the perennial fear of gambling having any links to crime, whether organised or otherwise.

Here are some of the key states that currently require affiliate licensing/registration:

New Jersey

Division of Gaming Enforcement (“DGE”) requires affiliates on CPA or revenue share deals to register as vendors/ancillary providers. New Jersey is one of the most strongly regulated online gaming markets, and one where the regulator keeps the requirements for obtaining an online gaming affiliate licence up-to-date on its website ( regulator’s websites can often be hard work to navigate). Updated guidelines have been published to ensure that affiliate marketers do not promote gambling platforms that are not authorised by the state.

The DGE plainly understands the need to supervise the supply chain, particularly where affiliate bad actors in the past flouted social responsibility, responsible gambling and privacy while making operators utterly dependent upon them. With over $246.8 million being made in online gaming in 2025 in NJ, it is safe to say the market continues to thrive and grow at a rapid rate, meaning both market and demand are there for licensed affiliate companies. In New Jersey, affiliates have two separate categories: a vendor registration, in which the affiliate is paid a fixed amount, regardless of what the user does after clicking. The other application is an Ancillary CSIE (Casino Service Industry Enterprise) licence, in which the affiliate is paid based on underactivity or revenue tied to the user's gambling activity.

It is important to note, the DGE has made it clear that all sub-affiliates must also be licensed if they are to receive compensation that triggers the above requirements. There is also a large emphasis on ensuring geo-location to avoid promotion to NJ residents via web and mobile. With the larger stream of income and traffic being created in this state, this would seem the right choice for an established affiliate brand.

Pennsylvania

Pennsylvania Gaming Control Board (“PGCB”) requires licensing/registration for affiliates. In Pennsylvania, any affiliates (i.e., media sites, lead generators, etc.) that promote casino, sports betting, or other gaming are treated under the law as Gaming Service Providers (GSPs) when they provide “non-gaming goods or services” to licensed gaming entities. There are two levels for GSPs: registered and certified, depending on the amount of income threshold. Pennsylvania also allows “Sponsored” vs “Un-sponsored” registrations: a “Sponsored” GSP is an affiliate that already has an agreement with a specific slot machine licensee/applicant; “Un-sponsored” is when the affiliate doesn’t have such an agreement in place. There are additional fees for private holding companies, personal history forms (for owners/officers/ directors/key employees), etc.

Also, there is a non-refundable deposit required when applying. In June 2025, Pennsylvania recorded $544.7m in gaming revenue, a 15.4% increase from the previous year. iGaming revenue climbed 32.3% to $212.6m, while sports wagering grew 71.4% to $51.2m. With these figures only rising, this again could be an ideal state in which an established affiliate brand could look to get licensed.

Colorado

The Division of Gaming requires affiliate registration here. Colorado’s Division of Gaming (part of the Department of Revenue) offers different gaming / sports betting licences, like Operator, Master, Vendor (Major / Minor), Support, and Key employee. There are support licences and vendor licences. Affiliates typically fall under a “vendor” category (particularly “Vendor Minor” if one is doing marketing/affiliate work). For example, GiG’s WSN.com site obtained a Vendor Minor sports betting license in Colorado when acting as an affiliate. There was also media news of a recent renewal of a “Vendor License” by Media Troopers, which is a digital marketing/affiliate agency in CO. In essence, this confirms affiliates must hold a vendor licence in Colorado. Ben Truman, gambling industry veteran and special adviser to the WVU gambling policy centre, stated the following: “Affiliates played a key role in driving early growth in states like Colorado. If you look at other states that didn’t have an open affiliate market, growth was much slower. The challenge now is finding new ways for affiliates and operators to sustain that momentum together.”

Depending on the business, if one simply provides affiliate marketing/referrals for sports betting, it is most likely that one will need a Vendor Minor licence (marketing / media / affiliate). If you operate on a larger scale or have revenue share at high levels, a Vendor Major licence could be needed.

Indiana

The Indiana Gaming Commission requires vendor licensing for affiliates. Indiana classifies affiliate-marketing / referral arrangements sometimes under the umbrella of Sports Wagering Vendor (SWV), Supplier, or Registrant / Sports Wagering Registrant, depending on what services one provides. Indiana has recently eased licensing requirements for certain suppliers / vendors, including marketing affiliates, payment processors, and global media brands - specifically those whose risk is considered minimal. 

Affiliates that receive compensation by revenue share or CPA likely will come under these regulations. For example, the recent news item that VegasWinners Inc. was issued a “sports wagering certificate of registration” to refer customers in return for CPA or rev share. Some key considerations for affiliates to consider in this state are as follows: whether one’s affiliate activities are classified as pure “marketing affiliates” or considered “supplier / vendor” with high involvement, which determines how strict the licensing is. The recent easing of requirements may help, but one will still need to convince the regulator of minimal supply/vendor involvement.

It is essential that affiliates also make sure their advertising, content, and referral links are compliant with Indiana law (no targeting underage, only licensed operators, truthful representations, etc.). In 2024, Indiana's online gaming market revenue was approximately US$3.7 billion. Real-Money Gaming (RMG) accounts for a very large share (≈ 86%) of that total in 2024. The market is forecast to more than double by 2029, reaching about US$9.1 billion in total revenue, meaning this state would be a good target for all affiliate companies.

Virginia

The Virginia Lottery requires affiliates to register. In Virginia, people or entities that want to perform “vendor functions” for permit holders or sports betting suppliers must obtain a Sports Betting Vendor Registration. Affiliates doing marketing, referrals, or providing content typically fall under this “Vendor” category. The regulatory basis is in Virginia’s Administrative Code: 11VAC5-70-80 – Sports Betting Vendor Registrations. As part of the application, Virginia requires sufficient information for conducting a background check. That likely includes business identity, ownership structure, criminal history, etc. ( the exact documents are specified in the application form).

In February 2025, Virginia’s sports betting handle was US$556.8 million, with adjusted gross revenue (AGR) of roughly US$61.9 million, making this again a key state for affiliates to consider.

The above highlights the growing need and trend for affiliates to secure licensing in the US and certainly is welcome in some respects given that some regulators in other jurisdictions expect operators to become quasi-regulators of the affiliates they work with. The downside for affiliates is the dilemma of determining whether state-by-state applications should be driven by the operators with whom they contract or a desire to secure an application irrespective of any secured contract in the hope they will secure custom. Either way affiliates need to become regulation savvy.