Do You Need a License to Sell Video Games? Legal Requirements by Region and Model

Whether you need a license depends on where you operate, how you sell, and what you're selling. There's no universal "video game license"—but several overlapping requirements apply.

Universal Baseline (Most Jurisdictions)

• Business license/registration: Required for any commercial activity. City/county level (US), Companies House (UK), Gewerbeanmeldung (Germany), etc.
• Sales tax / VAT registration: Collect and remit tax on physical goods. Digital sales often have thresholds (e.g., $100k/200 transactions in US states; €10k EU OSS).
• Consumer protection compliance: Refund policies, warranty obligations, clear pricing, GDPR/CCPA for customer data.

By Sales Model

Physical Resale (Used Games)

• Secondhand dealer / pawnbroker license: Required in many US states (CA, FL, NY), UK (Scrap Metal Dealers Act), Canada (municipal).
• Record-keeping: Seller ID, item description, serial numbers for high-value items.
• No copyright license needed for reselling lawfully purchased copies (First Sale Doctrine / Exhaustion Principle).

New Physical Distribution

• Distribution agreement with publisher/distributor (not a government license).
• Age rating compliance: ESRB (US), PEGI (EU), CERO (JP), USK (DE). Mandatory for retail.

Digital Distribution (Own Games)

• Platform agreements: Steamworks, Apple Developer Program ($99/yr), Google Play Console ($25 one-time), Nintendo/PlayStation/Xbox developer programs (approval + fees).
• Payment processor compliance: Stripe, PayPal, etc. require KYC.
• Tax on digital services: EU VAT OSS, US state economic nexus laws.

Digital Resale / Key Selling

• High risk: Most EULAs prohibit transfer. Selling Steam/Origin/Uplay keys often violates TOS.
• Gray market: G2A, Kinguin operate in legal gray zones. Platforms may revoke keys.
• EU Court rulings (UsedSoft v Oracle) support digital exhaustion for *perpetual* licenses—but game licenses are usually subscriptions/services.

Region-Specific Notes

• US: No federal game license. State reseller permits vary. MPAA/ESRB rating voluntary for physical but required by retailers.
• EU: GDPR, Digital Services Act, Consumer Rights Directive. PEGI rating mandatory for physical. Geo-blocking restrictions.
• UK: Post-Brexit mirrors EU but separate UKCA marking, UK VAT.
• Australia: Classification Board (ACB) rating mandatory. ABN required.
• Japan: CERO rating. Specified Commercial Transactions Act compliance.

Online Marketplaces

• eBay/Amazon/Etsy: Their seller policies + your local laws.
• Steam/Epic/Console stores: Curated; require developer/publisher verification.
• Itch.io/Game Jolt: Open; self-certification.

Bottom line: Register your business, handle taxes, respect IP, and check local secondhand-dealer rules. Consult a lawyer for your specific jurisdiction and model.