SBC Interview: Simplifying Affiliate Licensing

Compliable’s Chief Strategy Officer, Justin Stempeck, spoke to SBC Americas about the legislative challenges that affiliates are likely to face in the months and years ahead and explained how Compliable is helping to resolve some of these regulatory headaches.

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SBC Americas: As igaming makes headway in the US, what part do you think affiliates will play there in 2022? 

JS: Affiliates will continue to be a key driver of customer acquisition and growth for operators to support igaming, although the outlook for the legislative expansion of igaming in 2022 appears somewhat limited at this time.

Since the fall of PASPA in 2018, however, interesting developments have been a common theme. The legalization of sports betting in an increasing number of states has been promising, and Compliable’s ability to accelerate the licensing process for both operators and vendors will be vital in the coming months and years as more and more markets open up. 

SBC Americas: How do you anticipate the affiliate licensing landscape in the US to change this year?

JS: Affiliate licensing will continue to be dictated differently by each state that legalizes online sports wagering. Eight US states currently require affiliate licensing: Arizona, Colorado, Indiana, Louisiana (determined by revenue), Michigan, New Jersey, Pennsylvania, and West Virginia.

At present, we expect to also see this requirement implemented in Maryland and Arkansas. In addition, although neither California nor Texas – two of the largest potential markets – have legalized sports betting, the collective regulation from border states has started to exert pressure on them. So we could see movement there, too. Compliable’s ability to rapidly address licensing obligations puts us in good stead in the eventuality that these states emerge. 

SBC Americas: What issues do you think may arise, and how can Compliable safeguard against them?

JS: Compliable will continue to serve as a resource to those affiliate marketers that need assistance managing licensing obligations across multiple different US jurisdictions, including any new states that open this year.

Our expertise will help guide those new to these emerging markets as confusion tends to surround the launch of any new state in regard to who needs licensing, what type of licensing is necessary, and the multiple details involved in the submission of licensing forms and associated paperwork.

SBC Americas: Are there any common mistakes that vendors tend to make when entering new markets? How would your platform help avoid them?

JS: Each new market has unique features that Compliable makes sure to highlight to any applicant. Oftentimes, in addition to licensing paperwork, a vendor will need to register with specific state agencies for tax purposes.

We provide helpful information on our platform to direct applicants to those resources so that even if the requirement is separate from a question on the licensing forms itself, a vendor can’t miss it.

Another common mistake made by first-timers is poor time management and waiting too long to file paperwork. Getting responses from a busy agency is difficult, so starting licensing applications in good time provides the best opportunity for clarity from the regulator.

SBC Americas: As new markets continue to open in the US, how can Compliable streamline the affiliate licensing process?

JS: Compliable’s entire goal is to simplify the process for affiliates. Our platform allows a vendor applicant to quickly answer only relevant questions and dramatically reduces the time to complete multiple state applications simultaneously. Our focus on incorporating the latest technology is one way that we accomplish this – for example, new tools allow us to assist operators with monitoring and tracking regulatory requirements for their vendors from a streamlined dashboard. We are always looking for ways to improve our customer’s experience and are currently building out support for integrated e-signature and e-notary on our platform as well.

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