Action247, Tennessee-based operator, has acquired the conditional license for operating sports betting in the territory of Tennessee. The license was granted by Sports Wagering Committee of the Tennessee Education Lottery Board of Directors.
The license approval was also given to five more suppliers and six operators by the regulator. The legal sports betting in Tennessee is going to launch on November 1st.
A Tough Market
Action247 will face fierce competition in some of the largest brands…
…such as DraftKings, FanDuel and BetMGM. These have all got their license for operating in Tennessee.
Sports betting won’t be all that the Nashville-based company will provide: they will also offer free-to-play sports prediction games for real money prizes in the US. The company has not, so far, claimed any plans to offer sports betting in any other US states.
On October 16th, Sports Wagering Committee of the Tennessee Education Lottery Board of Directors will meet again to give potential licensees another chance to get approval before the launch.
No Land-Based Betting Needed
Tennessee Education Lottery president and chief executive Rebecca Paul Hargrove said:
“We are working diligently with all applicants as we establish and support a responsible and competitive sports wagering program in Tennessee.”
Once the sports betting market goes live on November 1st…
…Tennessee will become the first state to allow mobile and online wagering without land-based tethering requirement. The SB0016 has passed into law without needing Governor’s signature in May 2019.
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.
IGT Contract Extension
International Game Technology has extended its contract with Tennessee Education Lottery.
The contract, which already exists for some time, has been extended for two more years and will last until June 2017.
Rebecca Hargrove of Tennessee Education Lottery Corporation president has said that “IGT provides unprecedented lottery expertise, and we’re excited to leverage its digital lottery knowledge in the overhaul of our loyalty website and mobile app, making them both more convenient and appealing for players.”
“Local operator Action247 receives Tennessee betting license”, igbnorthamerica.com, October 6th, 2020.