The Tennessee-based operator, Action247, has secured a conditional licence to conduct sports betting in the Tennessee Territory. The licence was granted by the Tennessee Education Lottery Board of Directors’ Sports Wagering Committee.
License approval was also granted by the regulator to five additional suppliers and six operators. Legal sports betting will be introduced on November 1st in Tennessee.
With some of the biggest brands, Action247 will face fierce rivalry such as DraftKings, BetMGM and FanDuel. They all have a licence to operate in Tennessee.
Sports betting will not be all that the Nashville-based business will provide: for real money prizes in the US, they will also offer free-to-play sports prediction games. To date , the company has not requested any plans to offer sports betting in any other US states.
On October 16th, the Tennessee Education Lottery Board of Directors’ Sports Wagering Committee will meet again to give prospective licensees another opportunity to get approval prior to the launch.
President and Chief Executive Rebecca Paul Hargrove of Tennessee Education Lottery said: “We are working diligently with all applicants as we establish and support a responsible and competitive sports wagering program in Tennessee.”
Once the November 1st sports betting market goes live Tennessee would become the first state to allow mobile and online wagering without land-based tethering requirement. Without needing the signature of the Governor in May 2019, the SB0016 has passed into law.
In April this year, sports betting rules were approved by the lottery, with a number of contentious elements changed. This was reduced to 90 percent after initially seeking to impose a payout rate of 85 percent of stakes, although this would still be lower than the average rates in many other states, such as New Jersey.
Operators are expected to pay a $750,000 licencing fee and will be charged at 20 percent of gross income.