The House of Representatives passed the Fantasy Sports Tax Act, which aims to regulate and tax the sector.
US.- On Monday night, Tennessee’s House of Representatives approved the Fantasy Sports Tax Act. The bill would not only clarify that DFS are legal in the state, but it would also put a tax on these activities and regulate the sector.
The Senate recently approved a similar bill on DFS as well, so now it is to see if Senators agree to the changes made in the House. Under the House of Representative’s bill, online companies offering the contests must be licensed by the state, players are limited to betting only US$2,500 per month and it would allow the state of Tennessee to impose a gambling tax on fantasy sport operators.
A few weeks ago, Tennessee Attorney General Herbert Slatery issued a legal opinion saying that fantasy sports contests are deemed illegal gambling in the state. The AG cited the state law under which gambling “means risking anything of value for a profit whose return is to any degree contingent on chance, or any games of chance associated with casinos, including, but not limited to, slot machines, roulette wheels and the like.”