Tennessee Starts Accepting Sports Betting License Applications

Tennessee Starts Accepting Sports Betting License Applications

After the Tennessee Education Lottery finalized the rules and regulations for the state’s sports betting market, the regulators are now inviting applications for running athletic wagering businesses in the state.

Tennessee is waiting for sports betting markets

The state legalized sports betting in May 2019 but has been waiting for the launch its markets since then. The Tennessee Education Lottery finalized the market’s regulations only recently, giving the Tennessee Lottery a chance to start accepting sports betting applications. If all goes well, the state could have a functional betting market by July.

Tennessee Starts Accepting Sports Betting License Applications

Interested sportsbook operators can read the new rules and regulations and apply for appropriate licensing. Once done, the lottery will have about 90 days to approve their licenses. The state law doesn’t put a cap on the maximum number of licenses.

However, it has divided licenses into different categories. To operate a mobile sportsbook in the state, an operator has to pay a $50,000 non-refundable fee and a $750,000 application fee. Suppliers will pay $50,000 in a non-refundable fee and $75,000 for the application fees. Contractors will get licenses for $7,500.

What’s unique about Tennessee sports betting?

The state of Tennessee will mark the payout to 90%, which is 5% higher than its original proposal. This high rate of payout caused a major stir in the industry as it was looked upon as a measure to discourage operators from entering the market. Critics said that the odds of an operator becoming profitable are too less at a 90% payout rate.

The state will also levy a 20% tax on sports betting revenue. Interestingly, this revenue will be paid every month. Other states have an annual payment schedule. The Tennessee Lottery will approve all advertisements sent out by the operators. The Lottery will get 30-days’ time to review advertisements and marketing material. The regulator suggests that this would help in avoiding instances of underage gambling. Tennessee has fixed the legal betting age at 21.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.