Back in April, legislature in Tennessee passed a mobile-only sports betting bill. One month later, the bill became law. The state was the first to approve a mobile-only option, as they do not have any physical casinos to offer land-based services. The bill was not signed by Governor Bill Lee, but it was not vetoed, so it is now law. Players have been anxiously waiting for the industry to begin and it seems the state is now one step closer to getting started.
Request for Proposal
Last week, the Tennessee Education Lottery issued a Request for Proposal for a company to review potential sports betting operators. The proposal was issued on the 11th of September and bids are due by the 26th. The company selected will help the Lottery is assessing the financial stability of every company that bids and applies for a license to offer sports betting services in the state.
The cautionary action is a different one when compared to other states and how they got started in the sports betting industry. For the most part, states would review potential vendors themselves. The Lottery wants assistance in the decision making process.
The site of the Lottery has a Request for Application link where operators who are interested in licensing can find information. The application can be filled out now and then regulators will contact the applicants once the process begins.
The company selected to help with the vetting process will need to complete a review in a 60 day time frame. For potential operators, three years of audited financial statements must be provided including annual and quarterly regulatory filings. Tax returns, bank statements and reports to government agencies are also required.
Companies interested in being the reviewer will need to provide proposed compensation as well as an outline as to how they will determine an applicant’s financial strength. A sample report must also be included.
Additional Sports Betting Regulations
In Tennessee, the new industry will have a 20% tax rate on adjusted gross revenues from sports betting. The state will be the first in the US to mandate that official league data be used. Illinois is the only other state that decided to implement this mandate as well.
Professional and college sports betting will be allowed, but the state has a prohibition on in-play prop bets on college games. Players taking part in the new industry will have to be 21 years of age or older. The regulator of the industry will be TEL, a new committee created in the state.
If Tennessee can hurry up and start offering services, they will be way ahead of neighboring states. of the eight border states, only Mississippi and Arkansas offer sports betting. Players from regions such a Georgia, Alabama and Kentucky are sure to visit the state once the industry is live to be able to place wagers on their favorite teams.
While Tennessee is moving forward in the process, it will still take some time in order for operations to get under way. Once the review company is selected, the process will hopefully move a little faster.