SportsTech

Operating across multiple states means navigating a complex web of gaming regulatory frameworks, each with its own licensing requirements, reporting obligations, and compliance standards. We help you manage it all, from initial gaming license applications and state-specific reporting to internal controls implementation and audit readiness. Our team supports gaming commission audit preparation, financial statement audits for regulatory submission, internal controls testing, license renewals, and suitability investigations, ensuring you maintain good standing across every jurisdiction you operate in.

Sports betting revenue recognition under ASC 606 is far from straightforward. How should you account for that $1,000 risk-free bet promotion? When a customer uses a bonus credit, is that contra-revenue or a marketing expense? Should you capitalize customer acquisition costs or expense them immediately? Your auditors, investors, and regulators all want answers. Our expertise includes promotional credit accounting and disclosure, free bet and risk-free bet treatment, bonus structure revenue impact analysis, customer lifetime value calculations, and player liability reserve methodology.

Sports betting tax structures vary dramatically by state. Gross gaming revenue (GGR) tax rates range from 6.75% in Iowa to 51% in New York. Some states allow full promotional deductions; others cap them at 20% or disallow them entirely. Our team provides multi-state gaming tax compliance, promotional deduction optimization strategies, state and local tax (SALT) planning for multi-state operations, and tax provision preparation and quarterly estimates.

Gaming operators handle vast amounts of sensitive customer data including personal information, payment details, and betting activity. Protecting this data requires robust cybersecurity frameworks and compliance with data protection regulations. Withum provides cybersecurity assessments and penetration testing, data privacy compliance (GDPR, CCPA, state privacy laws), SOC 2 examinations for service providers, incident response planning and support, and information security program development.

Whether you’re looking to acquire a competitor, merge with a complementary platform, or position your company for an exit, M&A in the sports betting and iGaming space requires specialized expertise. Each transaction has unique regulatory, financial, and operational considerations. From buy-side and sell-side due diligence to valuation of player databases and licensing agreements, our SportsTech team helps you structure and execute transactions that align with your strategic goals.