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Can I offer a freemium version of my product or service in Pennsylvania? What are the requirements?
Offering Freemium Version of Product or Service in Pennsylvania
Pennsylvania law does not have specific regulations regarding offering freemium versions of products or services. Therefore, you can offer a freemium version of your product or service in Pennsylvania without any specific requirements.
However, if the product or service is related to interactive gaming, there are certain requirements that must be met. According to 58 PACO Section 807a.1, an interactive gaming service provider or person seeking to conduct business with an interactive gaming certificate holder or interactive gaming operator shall apply to the Board for certification if the interactive gaming service provider or person is providing certain services. These services include data hosting services, payment processing and related money-transmitting services with direct contact with a registered player’s interactive gaming account, customer identity, age verification and geo-location verification used in the conduct of interactive gaming, interactive affiliate goods or services and the interactive affiliate is being paid a revenue share, and any other person as determined by the Board [1.2].
If the product or service falls under any of the above categories, the interactive gaming service provider or person must apply for certification with the Board. In addition, the applicant for an interactive gaming service provider certification shall do all of the following: submit applications and release authorizations for each individual required to be qualified, comply with the general application requirements in Chapters 421a and 423a, and reimburse the Board for costs incurred in conducting the investigation of the applicant [1.2].
If the product or service is not related to interactive gaming, there are no specific regulations in Pennsylvania that prohibit offering a freemium version. However, businesses must comply with general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions) [58 PACO Section 807a.1(b)].
Source(s):
Jurisdiction
Pennsylvania