Can licensing problems in one jurisdiction have a ripple effect on other places where I do business?
Q: If I run into licensing problems in one jurisdiction, can that same problem have a ripple effect on other places where I do business?A: Yes. Any negative changes in licensing status in one jurisdiction will often trigger reporting requirements in other gaming jurisdictions. In addition, many gaming regulators have the discretion to impose licensing sanctions onto a licensed company that commits an infraction in another gaming jurisdiction. As such, it is important to maintain compliance with all jurisdictions.
If a supplier encounters a material event that negatively affects its licensing status, it must report this event to the gaming regulatory agency within the required notification timeline. Self-reporting the event not only maintains compliance with the jurisdiction's reporting requirements, but it also provides evidence to gaming regulators that the company is being proactive about the situation. Swift and decisive corrective action can help mitigate potential licensing fines or other penalties that the gaming authority has the discretion to impose on a noncompliant licensee. Thus, open and honest communication, combined with a comprehensive action plan to prevent future compliance breaches, is often the best course of action when a compliance problem arises.
