Tennessee tightens sports‑wagering rules on identity verification, geolocation and self‑exclusion; House approves, Senate returns no recommendation

The Tennessee Sports Wagering Council proposed a broad package of rule updates on June 24 to reflect industry technology, tighten identity and geolocation checks, and strengthen responsible‑gaming measures. The joint Government Operations Committee voted the item out of the House with a positive recommendation; the Senate recorded a procedural outcome of no recommendation.

Stephanie Maxwell, deputy director and general counsel for the Tennessee Sports Wagering Council, said the updates reorganize duplicated text, add stronger standards for know‑your‑customer verification and geolocation to ensure bettors are located inside Tennessee, and improve operators’ reporting of suspicious or fraudulent activity. Maxwell also described a new approach to the state’s self‑exclusion system: instead of each operator maintaining separate lists, the council proposes a single state‑managed self‑exclusion registry that the agency would disseminate to operators.

Representative Parkinson asked the council to “walk us through how the funding flows from sports wagering,” and Maxwell explained privileged‑tax collections are a handle tax administered by the treasurer. She said 80% of the privilege tax had previously supported problem‑gambling resources and that recent legislation passed during a special session will redirect some of that money to education funding (the speaker described it as the Education Freedom Act). The council stated it does not operate on privileged‑tax revenue; its budget is funded by license and vendor registration fees.

Committee members also pressed the council on responsible‑gaming tools, including voluntary self‑exclusion, account cool‑offs, and the potential role of algorithms or AI. Maxwell confirmed the council would manage a centralized self‑exclusion list and that many operators already use behavioral monitoring and limits; she also described industry integrity monitoring providers, private firms that report suspicious wagering markets and information to regulators.

The House passed the rule with a positive recommendation. The Senate vote produced an outcome described in the minutes as “no recommendation” following recorded ayes and present‑not‑voting tallies.

The council said the changes reflect three and a half years of regulatory experience and extensive consultation with licensed operators and vendors during prefiling outreach.