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Do my players also need to buy a Foundry license if they want to play? Or only the GM need to have a license?

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Only one person in your group needs to buy a license, it doesn't have to be the GM.

The admin (the person who buys the license and hosts it themself of through a hosting service) is able to create a world and create users for that world. Then, they can assign roles to users, including the GM role.

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