Tennessee-based Action247 has received a conditional license to operate sports betting in its home state from the Sports Wagering Committee of the Tennessee Education Lottery Board of Directors.
In addition, five further suppliers and six new vendors have also received license approval from the committee ahead of the planned 1 November launch date for legal betting.
Prior to this round of approvals, geolocation software provider GeoComply was the only approved supplier.
Vendor licenses – which affiliates, along with certain other suppliers such as payment processors, must obtain – had been given to 54 companies in total.
Action247 will compete with some of the nation’s largest brands, such as DraftKings, FanDuel and BetMGM, which have all received licenses of their own to operate in Tennessee.
In addition to sports betting in Tennessee, Nashville-headquartered Action247 also offers free-to-play sports prediction games for real money prizes across the US. It has not, however, mentioned any plans to seek betting licenses in other states.
The Sports Wagering Committee of the Tennessee Education Lottery Board of Directors will meet again on 16 October, giving potential licensees one last chance to receive approval before launch.
“We are working diligently with all applicants as we establish and support a responsible and competitive sports wagering program in Tennessee,” Tennessee Education Lottery president and chief executive Rebecca Paul Hargrove said.
Assuming a launch on 1 November as planned, Tennessee would be the first to allow mobile and online wagering without a land-based tethering requirement, after SB0016 passed into law without Governor Bill Lee’s signature in May last year.
Sports betting rules were approved by the lottery in April this year, with a number of controversial elements amended. Having initially looked to impose a payout rate of 85% of stakes, this was reduced to 90%, though this would still be lower than the average rates in many other states such as New Jersey.
Operators are required to pay a license fee of $750,000, and will be taxed at 20% of gross revenue.