(a) No online gaming service provider shall provide goods or services to, or otherwise transact business related to Internet games or retail sports wagering with, a master wagering licensee or a licensed online gaming operator, sports wagering retailer or online gaming service provider in the state without a license from the department, if such a license is required under the provisions of subsection (b) of this section. An online gaming service provider shall apply for a license on a form and in a manner prescribed by the commissioner. Such license shall be renewed annually. The initial application fee for an online gaming service provider license shall be two thousand dollars and the annual renewal fee shall be two thousand dollars.

(b) The commissioner shall establish through regulations adopted pursuant to § 12-865, the criteria for determining when licensure as an online gaming service provider is required, based, in part, on whether the online gaming service provider (1) provides goods or services related to accepting wagers for Internet games or retail sports wagering, including, but not limited to, services to determine the location and identity of customers such as geolocation and “know your customer” services, payment processing and data provision, or (2) provides other goods or services that the department determines are used in, or are incidental to, Internet games or retail sports wagering, in a manner requiring licensing in order to contribute to the public confidence and trust in the credibility and integrity of the gaming industry in this state.

(c) The department shall transfer any licensing fee collected pursuant to subsection (a) of this section for an online gaming service provider that is affiliated with the holder of a master wagering license issued under § 12-852 to the State Sports Wagering and Online Gaming Regulatory Fund established under § 12-869.