Sports Gaming Operator License and Renewal Fees

SWC Rule 1350-01-.05(5) provides:

“For a Sports Gaming Operator License, Applicant shall submit a nonrefundable application fee of fifty thousand dollars ($50,000) due at the time the initial or renewal application is submitted. Failure to submit the $50,000 application fee shall cause the application to be rejected or cause a delay in the processing of an application. Upon approval of the application, the $50,000 application fee shall be applied to the Sports Gaming Operator’s licensing fee provided by Rule 1350-01-.04(1)(b).  The total fee shall be paid in full within ten (10) days of approval of the License or prior to expiration of the annual renewal period, which shall be one (1) year from the date of the issuance of the License. “ 

FAQ:

Is the $50,000 application fee refundable? No. Tenn. Code Ann. § 4-49-117(b) provides: “An application for a license must include the following: … (10) A nonrefundable application fee in the amount of fifty thousand dollars ($50,000)…”

When is the fee due? SWC Rule 1350-01-.05(5) provides:  “For a Sports Gaming Operator License, Applicant shall submit a nonrefundable application fee of fifty thousand dollars ($50,000) due at the time the initial or renewal application is submitted. … Upon approval of the application, the $50,000 application fee shall be applied to the Sports Gaming Operator’s licensing fee provided by Rule 1350-01-.04(1)(b).  The total fee shall be paid in full within ten (10) days of approval of the License or prior to expiration of the annual renewal period.”

Is this fee annual? Yes. SWC Rule 1350-01-.04(1)(b) provides: “For the first year of licensure, the annual licensing fee shall be seven hundred fifty thousand dollars ($750,000), as described in Rule 1350-01-.05 (Application Process). For the second or subsequent year of licensure, the annual licensing fee, as  described in Rule 1350-01-.13 (Renewal of License), shall be:  1.  For Licensees receiving one hundred million dollars ($100,000,000) or more in Gross Wagers in the immediately preceding twelve-month period, seven hundred fifty thousand dollars ($750,000); and 2. For Licensees receiving less than one hundred million dollars ($100,000,000) in Gross Wagers in the immediately preceding twelve-month period, three hundred seventy-five thousand dollars ($375,000).”

For additional information on payment of Sports Gaming Operator licensing fee please contact:

Grant Crosthwaite
SWC CFO
615-906-1563
Grant.L.Crosthwaite@tn.gov