Although a series of interrelated federal and state statutes comprise the regulatory backdrop for social casino gaming, the crux of the issue revolves around three elements common to most every state definition of gambling, namely the presence of:

Currently, there is little explicit regulation of social casinos and even less agreement over existing gaming laws' impact upon their legality.

Social gaming offerings are likely to face similar regulatory uncertainty and political headwinds as loot boxes. Social gaming (entertainment that does not require consideration, be a game of skill or does not offer a prize) and social gaming regulations are relatively new to the US gaming landscape and are subject to little oversight. It should be noted, there is not one universal license or fee but rather is dependent upon each state (jurisdiction) that has legalized gambling. That time, expense and uncertainty caused many businesses to consider the social gaming market (gambling is not a component). Generally, licenses can range from US$500 thousand for an operator down to several hundred dollars for a vendor. Some form of license is required from the operators to vendors. Strict licensure requirements and licensing fees create a significant barrier to market entry. While sports wagering and online gambling have seen significant growth and opportunity, the US market presents challenges to those companies that wish to participate. With the addition of the US, the estimated legalized global gambling market is expected to reach US$546 billion by 2028. Currently, six states allow this type of gambling. The momentum of gambling has transitioned into the market of online gambling or online casinos. Presently, over 30 states provide for some form of legal sports wagering while a few others are actively discussing legalization. Prior to that decision, sportsbook wagering was largely confined to Nevada. The United States has experienced a dramatic shift in its gambling market which began with the 2018 US Supreme Court decision that overturned the Professional and Amateur Sports Protection Act of 1992.

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