Tennessee is ready to go with new requirements to license daily fantasy sports operators, according to Secretary of State Tre Hargett.
Tennessee was one of the first states to pass regulations for daily fantasy sports sites. The sites will now be overseen by the state Division of Charitable Solicitations and Gaming—which is part of Hargett’s office—and will now be known as the Division of Charitable Solicitations, Fantasy Sports and Gaming.
The sate adopted its Fantasy Sports Act of 2016, which requires fantasy sports operators to be licensed in the state. The law applies to both daily fantasy sites and season-long contests that charge players an entry fee.
Fantasy sports operations with free games where players do not pay an entry fee to win a prize are excluded from the law.
Prior to the law’s passing, the state’s attorney general had ruled the game illegal under Tennessee law.
“Tennessee is one of the first states to enact legislation specifically addressing fantasy sports contests,” Hargett said in a news release. “We look forward to ensuring operators follow the law to offer a new level of consumer protection for Tennesseans who choose to play these online games.”
Licensing requirements include submitting financial documents and maintaining segregated player funds, the release said. Sites will pay a six percent tax on revenue gained in the state under the new regulations. Licensing procedures began this month.
The division will work in conjunction with the Tennessee attorney general’s office, state Department of Revenue and various law enforcement and state agencies.
