Tennessee has taken another step towards launching sports betting.
The state of Tennessee has released draft rules for sports betting and sports betting advertising regulation for public comment.
Members of the public will have until December 20 to raise any concerns they have over the proposed rules and regulations for sports betting in Tennessee.
This news comes after Tennessee’s Governor Bill Lee allowed the sports betting bill to pass into law without his signature back in May. As there are no casinos in Tennessee, residents will be able to bet on sports online or via a sports betting kiosk.
Looking at the regulations
Under the regulations, sports betting operators must submit their advertising materials to the Tennessee Lottery at least 30 days before they are used. On top of this, sports betting must not be directly advertised to minors and must include a responsible gaming message.
The advertising regulations also state that “advertisements shall not be placed with such intensity and frequency that they represent saturation of that medium or become excessive.”
The regulation also states that licensees must be members of the Global Lottery Monitoring System (GLMS).
The Tennessee Lottery will offer three different types of license for sports betting. A level I license will allow any person to offer sports betting to the public and will cost $750,000 a year.
Level II licenses will cost $75,000 and will be required by companies that provide “geolocation services, sports wagering equipment, software, systems, data, global risk management services, patron accounts management systems, payment processors or services that are material to the conducting of on-line interactive sports wagering.”
A level III license will be required for a person who “provides services that are not material” to sports betting. These will cost $7,500 annually and the Tennessee Lottery will decide what services are considered “material.”
As per state regulations, operators must use official league data, unless the leagues cannot provide the data for a reasonable price.
The Tennessee Lottery will also be responsible for granting operators approval to offer bets on specific events. Tennessee’s betting regulations also state that prop bets will not be allowed on college events or on professional events in cases where the outcome is determined by a single person.
Sports betting in Tennessee
In late May, Tennessee became the fourth state to legalize sports betting in 2019. Governor Bill Lee allowed the state’s sports betting bill to pass into law without his signature, despite being opposed to the expansion of gambling.
In a statement, Lee said: “I do not believe the expansion of gambling through online sports betting is in the best interest of our state, but I appreciate the General Assembly’s efforts to remove brick and mortar establishments. This bill ultimately did not pursue casinos, the most harmful form of gambling, which I believe prey upon poverty and encourage criminal activity.”
Once the regulations have been finalized, the state will begin accepting sports betting license applications.