A method for distributing software licenses for authorizing the installation of gaming software, by a user, onto a gaming machine is provided. The software installation process is initiated and an electronic key containing an encrypted license count interfaces with the gaming machine. The encrypted license count represents the number of licenses available for authorizing the installation of a particular gaming software. The encrypted license count is accessed and it is determined whether installation is permitted. Additionally a processing means for accessing a remote server, via a network connection, and increasing the licensing count stored in the electronic key is provided.