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Sports Wagering Council asks to reallocate funds for four staff positions; says licensure fees fund operations
Summary
Executive Director Marybeth Thomas told legislators the council is funded by licensure fees (not privilege-tax receipts) and asked to reallocate existing line items to add four positions (two attorneys, a compliance role and an internal auditor); she also noted 5% of the privilege tax is directed to mental‑health treatment programs.
Marybeth Thomas told the committee the Sports Wagering Council does not rely on privilege tax revenue for operations, explaining, "Our funding comes from licensure fees," and that the council has consistently collected more licensure fees than its spending authority.
Thomas asked to reallocate existing operational dollars—largely by reducing third‑party contracts—to cover four additional positions (two attorneys, one compliance position and one internal auditor) without increasing overall spending authority. She described the internal‑auditor request as a recommendation from the executive‑branch audit function and said the shift would move money from contract spending to salaries and benefits.
On the privilege tax, Thomas confirmed Tennessee’s rate is 1.85% of gross wagers and said the Department of Mental Health receives 5% of the privilege tax to fund gambling‑treatment and counseling services. Committee members probed how Tennessee’s tax structure compares with other states; Thomas said states vary and Tennessee taxes by handle (a gross‑receipts approach) which yields more stable revenue when operators’ net profits fluctuate.
