The Tennessee Education Lottery is now accepting applications for new mobile sports betting licenses in the state, with all documentation now available on its website.
Application documents are split into four categories: sports gaming operator, supplier, vendor, and operator and supplier, depending on the type of license an applicant requires.
Karen Lenoir will serve as contract compliance coordinator for the sports betting licensing process.
The Tennessee House of Representatives and Senate approved a bill to legalize mobile sports wagering in May last year, with Governor Bill Lee allowing the bill to pass without his signature later that month.
Key regulations licensees will face include a controversial fixed payout rate, with this being set at 90%, having originally been set at a rate of 85%. This 90% rate has come in for criticism, with commentators warning that it will erode licensees’ revenue.
Applicants that secure a Level 1 operator license in Tennessee will need to pay a fee of $750,000, while Level II (supplier) licenses will cost $75,000 for Level II, with both licenses also subject to a $50,000 non-refundable application fee.
A Level III license, which covers contractors, subcontractors, or independent contractors that provide services to Level I or II licensees will cost $7,500.
Tennessee’s lottery board will have 90 days to approve or deny an application, while there will be no limit as to the number of licenses that may be issued.
Other measures include a tax rate of 20% of gross income for operators, with this to be paid on a monthly basis, while marketing will be tightly controlled, with all promotional materials to be approved by the lottery at least 30 days before they are published.