Tennessee is now the third state—along with Indiana and Virginia—to adopt daily fantasy sports regulations and legalize the games.
Tennessee Gov. Bill Haslam signed the state’s bill into law which will take effect in July. The bill charges a six percent tax on revenue DFS generated by Tennessee residents. The industry will be monitored by the Tennessee Secretary of State.
The Secretary of State’s office is given the power to “establish appropriate fees for application and license renewal, and other applicable fees.” The amounts of those fees, however, were not spelled out in the bill.
Tennessee Attorney General Herbert Slatery had issued an opinion that DFS contests were illegal under previous state law, but the advisory opinion did not shut down play in the state.
Also, the Colorado House of Representatives approved a daily fantasy sports there and the measure now goes to the state Senate.
The bill requires DFS operators to register and be licensed by the state, but does not set licensing fees.
Other provisions require operators to separate player deposits from operational funds, maintain adequate financial reserves, exclude players below age 18 and incorporate responsible gambling measures and submit to annual independent audits, according to the Associated Press.
The bill also declares that DFS is a game of skill and not gambling, which has been an important point of contention for the industry. The bill would establish an Office of Fantasy Sports to oversee DFS activity, and bans employees of DFS companies and their relatives from competing in the games.
