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.