CC will fail to validate its license if the google play services on the device are not accessible, if networking is blocked, if the account used to purchase CC is not authorized for the account, or if apps are prevented from taking to each other. From what you say I suspect that it is one of the first two, but as I know nothing about the hudl2 my suspicion should be taken with a grain of salt.
CC only checks its license when it connects. Perhaps there is something you can authorize while you connect and download books as your daughter, then de-authorize? If so then your daughter could use CC to access all the books you downloaded. However, as I said before, I don't know anything about this device, how it works, or what you can or cannot do; so this suggestion may have no merit.
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