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Can I offer contests that involve entry fees in Tennessee? What are the requirements?

Yes, you can offer contests that involve entry fees in Tennessee, but you must comply with certain requirements.

Requirements for offering contests with entry fees in Tennessee

To offer contests with entry fees in Tennessee, you must comply with the following requirements:

  1. Obtain a license: You must obtain a license from the Secretary of State to operate as a fantasy sports operator in Tennessee. [2.4]
  2. Pay taxes: You must pay a tax of 6% on all adjusted revenues of a fantasy sports contest offered by a fantasy sports operator to Tennessee consumers. [1.1]
  3. Submit an application: You must submit an application to hold an annual gaming event with an initial application fee of fifty dollars ($50). [2.2]
  4. File financial accounting: An organization authorized by the General Assembly to operate an annual event shall file within ninety (90) calendar days following the actual event date, a financial accounting pursuant to Tenn. Code Ann. § 3-17-106(a)(1) along with the remaining application fee due according to the organization’s gross revenue for the annual event. [2.2]
  5. Provide information: You must provide information about your business, including your name, location, ownership, criminal record, interest in other fantasy sports operators, description of operations, player deposits, financial information, and operational compliance. [2.4]
  6. Pay application fee: You must submit a nonrefundable application fee in the form of a check made payable to the Department of State in the amount of three hundred dollars ($300). [2.4]

Additional Authorized Fees

The Secretary of State is authorized to charge additional fees, including a late fee of $25 per day for any required filing, a correction of information fee of $25, and a change of information fee of $25. [2.1]

Conclusion

To offer contests with entry fees in Tennessee, you must obtain a license, pay taxes, submit an application, file financial accounting, provide information, pay an application fee, and be aware of additional authorized fees.

Source(s):
Jurisdiction

Tennessee