Probability applies for Nevada licence
Cost of suitability approval could be more than $1m " CEO reveals company is likely to apply for supplier-only licence.
Mobile gaming specialist Probability is in the process of applying for a Nevada licence, its chief executive has told eGaming Review.
The company is in the initial stages of the licensing process, and is applying for suitability approval, which will see the company’s directors vetted by the Nevada Gambling Commission. Through its Twitter account Probability revealed that its board of directors submitted their fingerprints to New Scotland Yard on Friday, and will now work through “100 pages of forms”.
In a blog for eGaming Review, gaming law practice group leader Anthony N. Cabot of Lewis and Roca explained that the vetting process was designed to allow regulators to investigate the major shareholders of public and private companies, scrutinising individuals’ possible criminal background, education, litigation history, sources of funding and reputation.
Any company applying is liable for the cost of the investigation, with Cabot revealing that the fee for non-US companies with five applicants can reach more than US$1m to be paid to the regulator.
In January Probability CEO Charles Cohen (pictured) said the company was “excited” by the possibility of entering the US market following the Department of Justice’s (DoJ) clarification on the Wire Act in December last year, describing the US egaming and online lottery market to be “a realistic opportunity” for the company as it had never taken US bets.
Cohen revealed that while Probability was likely to apply solely for a supplier licence, no decision would be taken until it had secured suitability approval. As a result Cohen added there was “no point” in looking for a local land-based partner at this stage.
“We are more likely to be looking for a supplier licence, as it is not clear what form licencing will take,” he told eGR.
The Nevada application follows Probability’s decision not to apply for Danish or Spanish licences, blaming the cost of regulation. Cohen has expressed an interest in entering Italy due to its high smartphone penetration, but added that as slot games are not currently licensed, the company would have to wait for changes in regulation.