Sports Betting Licensing Process Begins in Tennessee

The Tennessee Education Lottery has announced that it is accepting applications for mobile sports betting licenses in the state. The body has ed the necessary documentation for interested operators to review and on their website.

There are four documentation categories, according to the licensing process:

• Sports gaming operator
• Supplier
• Vendor
• Operator and supplier

A Controversial Measure

Sports betting licensing process will be coordinated by Karen Lenoir…

…after the Tennessee House of Representatives and Senate approved the bill to legalize mobile sports wagering in May 2019. Governor Bill Lee allowed the bill to without his signature.

The state’s market and its rules were finalized last week.

There is a controversial payout rate that is fixed for key regulations licensees. It is set at 90%, although it was original set at 85%. Critics have said that such a s high rate will erode the licensees’ revenue.

Level 1 operators license in this state will cost applicants $750,000, while Level II licenses will cost $75,000. Both are subject to a $50,000 non-refundable application fee.

Level III license costs $7,500.

20% Gross Income Tax

The applications must be either approved or denied within 90 days. There are no limits of licenses that can be issued.

The Tennessee legislation also outlines the 20% gross income tax rate for operators which will be paid on a monthly basis. Marketing will be controlled tightly. All the promotional materials must be approved by the lottery at least 30 days before they are published.

Source:

“Tennessee opens applications for sports betting licenses”, igbnorthamerica.com, April 22, 2020.