On Tuesday morning, the Tennessee Senate voted 19-12 in favour of the bill, which must now clear final hurdles before seeking Governor approval.
The bill evolved as it passed through the House, with the lower chamber removing provisions for retail betting in committee. This may be because there are no casinos in the state.
Further House amendments included an increased license fee, $750,000, and perhaps what will be the most off-putting to operators and suppliers, a tax rate of 20%.
The bill also restricts operators to only using official data sources, leaving the door open for leagues to monetise the data. It does not, however, include provisions for integrity fees.
Before reaching Governor Bill Lee’s desk, the House must approve the Senate’s amendments, with the current differences mainly technical.
Tennessee is home to three professional sports teams and 12 Division 1 NCAA programs.
The NBA’s Memphis Grizzlies, NHL’s Nashville Predators and NFL team Tennessee Titans are all based in the Volunteer State.
With a population of 6.7 million, more than two million higher than neighbours Alabama and Kentucky, the market represents a sizeable industry in the region.
Bettors in Tennessee must currently cross state borders to get their chance to wager, so the possibility of online sports betting within its boundaries will appeal to players.
