The gaming licensing application process can be a daunting experience for a business that has never been through the process. The licensing team at Odds On Compliance, with over 30 years of combined regulatory licensing experience, can alleviate the stress of the application process and assist companies in submitting the most complete application possible thereby hastening the regulatory review and approval process. This leads to quicker go-live dates.
In our two-part series, we will explore the essential steps and types of supporting documents needed by entities and Key Individuals to enhance the licensing application’s chance of success.
First, let’s take a look at Entity Applications:
Understanding the Requirements
Before diving into the document-gathering process, it is vital to thoroughly understand the licensing requirements specific to an entity’s business as well as the requirements of the licensing authorities in the jurisdictions where the entity seeks to conduct business. Knowledge is key!
Odds On Compliance can provide insight into the costs, rules & regulations, licensing requirements as well as expected turn-around times which will allow a company to make sound business decisions on the jurisdiction in which it wishes to conduct business.
Essential Corporate Documents
Fundamental corporate documents demonstrating the legal existence and structure of an entity are essential, even before the licensing process begins. The following documents are important in making a preliminary determination of Key Qualifiers (entities and individuals), as well as being required as part of every application:
- Corporate Structure Chart: Demonstrates the owners’ names and corporate managers;
- Ownership Chart: Demonstrates the fully diluted ownership by name and percentage owned;
- Management Chart: Outlines the names and titles of all officers of the operating entity.
All licensing applications will require proof of your company’s existence:
- Formation Documents: Certificate of Formation (LLC); Certification of Incorporation (INC), Operating Agreements, Bylaws, etc. These documents provide proof as to when and where an entity was formed as well as information on the number of stock shares issued and voting rights;
- Certificate of Good Standing: This document confirms that an entity is compliant with all legal requirements and has paid all necessary fees and taxes in the state of its formation. Some licensing authorities require proof of Good Standing from the formation state while others require your company to prove registration and good standing in their jurisdiction as well.
Licensing authorities often require financial documents to assess the financial stability and viability of a company. These may include:
- Financial Statements: Balance Sheets, Income Statements, Cash Flow Statement for the past few years and/or current quarter;
- Bank Statements: Provide an overview of an entity’s financial transactions and liquidity;
- Audited Financial Statements: For larger entities, audited financial statements prepared by a Certified Public Accountant may be necessary;
- Tax Returns: Each licensing authority requires a specific number of tax years to be provided.
Compliance & Regulator Documents
To ensure an entity’s compliance with industry regulations and standards, various compliance and regulatory documents may be needed, such as:
- Licenses: Existing gaming licensing applications and approvals;
- Insurance Policies: Proof of appropriate insurance coverage, such as liability insurance or professional indemnity insurance;
- Credentials and Qualifications of Key Individuals: These may include educational qualifications, work experience and roles/responsibilities of Key Individuals. Some licensing authorities require Key Individuals to submit in-depth licensing applications requiring extensive supporting documentation which will be discussed in Part 2.
In addition to the standard required documents outlined above, licensing authorities may require submission of other documents such as statements outlining the existence of supplier contracts, vendor contracts, independent contractors, loans, litigation, criminal history.
Gathering and submitting comprehensive supporting documents is essential for a successful entity licensing application. With assistance of the experienced Odds On Compliance team, an entity can be assured that its application and supporting documentation is complete, leading to a smooth submission and reduced regulatory review process.
The licensing process of an entity’s Key Individuals tends to be struggle for those executives as the required supporting documentation can be extensive, depending on the licensing jurisdiction.
Stay tuned for Part 2, where we’ll dive into this in more detail about Key Individual Applications.