Q: Is a license required for this business model?
I have a mobile application that shares sports betting predictions. there is no gambling in my mobile application. only the predictions of the results of sports matches are shared only by me. users see these predictions as paid subscribers. for example, the result of the LA lakers vs Boston Celtics NBA match, Boston wins. this information is shared. is this business model legal in america and if so, do I need a license?
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A:
Your business model of sharing sports predictions through a subscription-based app appears to operate in a legal gray area that varies by state. Since you're not facilitating gambling directly and only providing information, this generally falls under free speech and content creation rather than gambling regulations.
In California specifically, as long as you're not taking bets or directly facilitating gambling transactions, you likely don't need a specific gaming license. However, you should register your business appropriately (LLC, corporation, etc.) and obtain standard business licenses required for operating any company in your jurisdiction.
Keep in mind that while sharing predictions is legal, you should be careful with your marketing and disclaimers. Make it clear that you're providing entertainment and information only, not guaranteed outcomes. Consider consulting with a business attorney to review your terms of service and ensure compliance with state and federal regulations, especially given the connection to sports betting.
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