Tennessee finally approves sports betting licenses

Tennessee finally approves sports betting licenses
26th Sep, 2020
Simon Colmenares Author Profile Photo Simon Colmenares

The firsts online sports betting licenses has been handed out by Tennessee regulators on the verge of the market’s launch in November.

So far, three companies are giving it a head start with being the firsts to open up shop once wagering goes live, these companies being FanDuel, Draftkings, and BetMGM.

Tennessean sports betting will be exclusively available online and via mobile, since the state has no land-based casinos.

A number of vendor and supplier applications have also been accepted.

Sports betting licence applications in Tennessee are being overseen by the Sports Wagering Committee of the Tennessee Education Lottery (TEL). There will be no cap on how many operators can offer their services; they just need to be fit-for-purpose.

Before the market’s launch in around six weeks’ time, it’s expected that more applications will be processed and accepted.

Operators have been welcome to apply for licenses in the soon-to launch market since April.

Sports betting in the Volunteer State was passed into law in 2019, after Governor Bill Lee didn’t sign off related legislation. In accordance with state law, the bill didn’t need the Governor’s approval for it to come into effect.

Licenses are priced at $750,000 and are renewed on an annual basis. The state is the only one in the US at the moment with a hold requirement. Operators are obliged to have a hold of at least 10%, with fines and licence suspensions possible consequences for non-compliers.

It was predicted last year that regulated sports betting in Tennessee would result in an extra $50 million’s worth of tax revenue. All proceedings will go towards helping problem gamblers, as well as local governments and education.

Tennessee entering the iGaming industry once and for all

Tennessee is now another American state that joins the online gambling industry, since it is now  free to operate and develop without any issues. The first American state to take this initiative was New Jersey, and other states such as Nevada and Delaware have joined it ever since.

With the addition of Tennessee to the list, the United States is now starting to seem more appealing to the iGaming operators and partners. Little by little new American states begin to think of the iGaming industry as a worth trusting sector and plenty of investments are being made on it thanks to that.

Finally, the residents in the state of Tennessee will be able to take part in lots of different gambling options such as the opportunity to bet o their favorite sports events and casino games.

As of this moment, only a few gambling platforms have been reviewed and accepted to offer gambling services to the citizens.

But, with only a bit more than 6 weeks to kick-start the beginning of iGaming in Tennessee, plenty of other gambling sites are set to be reviewed and granted a license to offer their games and features to the players in Tennessee.

The regulation of the gambling activities in the state is surely going to be a complete success. The state government will now have authority to limit any suspicious actions, as well as the power to prevent the rise of the gambling addiction within the state’s borders.

Tax revenue pushed the move

For many iGaming experts, the initiative of regulated and accepting a determined number of online betting platforms in Tennessee was motivated by the fact that the government would be able to profit from it.

The speculation rose after the many years that the government spent rejecting the possibility of having iGaming platforms operating within its borders.

Now, all of a sudden, Tennessee creates a gambling authority that is set to be in control of all the betting platforms that want to offer their services within the mentioned state.

Tax revenue has been the main reason why other state governments decided to start regulated gambling activities as well. This all comes from the fact that the industry is growing and developing rapidly thanks to the many investments made on it.

In states such as New Jersey, regulating gambling activities have profiting the state government with more than $150 million in tax revenue in the past few years. Other states such as Nevada and Delaware have earned from $50 to $100 million in tax revenue as well.

Despite the real reasons behind the approval of iGaming activities, the players and operators have shown their happiness and excitement. For them, this is great news that will allow them to enjoy betting safely and expand their markets, respectively.

The concern for the gambling addiction

Not everything is smiles and screams of joy within Tennessee. The state government as well as the federal authorities have expressed their concerns when it comes to the potential rise of gambling addiction within Tennessee.

Because of that, strategies and methods are being planned with the hopes of finding the ways to prevent such a horrible condition to take over the state, especially if it ends up involving young citizens.

26th Sep, 2020
Simon Colmenares