Sports Wagering Council Seeks Four Positions as Litigation and Unlicensed Operators Pose Revenue Risks

The Tennessee Sports Wagering Council briefed Finance on March 31 and requested a reallocation of existing spending authority to fund four additional positions — a compliance analyst, a compliance attorney, an assistant general counsel, and an internal auditor — at a projected cost of $839,000 in order to build regulatory capacity as the market grows.

Executive Director Marybeth Thomas stressed that the agency is fee‑funded (licensure/registration) and does not touch privilege taxes; she said the additional positions would allow the council to increase investigations and enforcement of unlicensed operators, which the American Gaming Association estimates make up 30–40% of sports‑wagering activity nationally. Thomas also described active litigation involving prediction markets (including an adverse district‑court ruling now on appeal) and warned that an unfavorable outcome could significantly reduce market share and associated privilege‑tax revenue that supports some state programs. Committee members asked about the share of administrative costs in the council’s budget and whether the added positions would generate a net revenue benefit by capturing unlicensed activity — the council said the internal auditor and compliance staff would help recover revenue and strengthen control systems.

Chair concluded that the committee would revisit the request in a subsequent meeting and asked the council to provide monthly monitoring data and further justification before any budget action.