Tennessee hopes to launch sports betting in time for football season. But first the Tennessee Education Lottery has to license operators. Therein lies the rub for the agency responsible for regulating sports betting. Not a single application from a sports betting firm has come in, according to TN Bets.
In April, the TEL adopted sports betting regulations. Last month, the agency received dozens of inquiries.
Why? A Sports gaming operator license costs $750,000 annually. Additionally, there’s a 20 percent state tax on a licensee’s adjusted gross income from the wagers. An applicant also must submit a non-refundable fee of $50,000 with the application.
Regulators also put in a 90 percent “capped payout” over an annual period, the first of its kind in the U.S. The cap requires a sportsbook to retain 10 percent of its annual handle in the form of winnings, which cuts into the amount of money earned.
