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04/29/2016

(PRESS RELEASE) Tennessee Becomes Third State to Pass Fantasy Sports Legislation This Year

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(PRESS RELEASE) Tennessee Becomes Third State to Pass Fantasy Sports Legislation This Year

New York, NY, April 28, 2016 — Today, Tennessee Governor Bill Haslam signed a bill into law clarifying the legal status of fantasy sports in Tennessee and installing a number of strong consumer protection regulations that all fantasy sports companies must adhere to when operating in the state. Tennessee becomes the third state this year to enact positive fantasy sports legislation, following Indiana and Virginia, which passed laws to protect fantasy sports players earlier this year.

“More than one million fantasy players in Tennessee now know that their right to play fantasy sports is safeguarded and that smart consumer regulations are in place to protect them on all fantasy sites operating in the state,” said Cory Fox, Counsel for Policy and Government Affairs for FanDuel. “Tennessee’s elected leaders — Governor Haslam and the members of the legislature, in particular bill sponsors Senator Jack Johnson and Representative Pat Marsh — took a detailed and careful approach to this issue, and delivered a real solution for the state.”

Tennessee’s fantasy sports law clarifies the state’s laws to reflect that skilled-based fantasy sports games are legal under statute and ensures all operators of fantasy sports companies must adhere to the following regulations:

  • Ensuring players are 18 and above;
  • Keeping player funds separate from operating funds, ensuring player money is accessible at all times;
  • Banning use of uncompetitive software or “scripts” used to manipulate a fantasy contests;
  • Banning employees and family members of fantasy sports companies from playing;
  • Requiring “high experienced players” to be clearly identified for all users to see;
  • Banning real-life athletes, coaches or team personnel from playing in fantasy games related to their real-life contests;
  • Restricting access to non-public information that could impact fantasy contests;
  • Banning games based on college or high school athletics; and
  • Requiring registration with the state.

Nearly 30 states across the county are advancing similar, positive legislation for fantasy sports including California, Mississippi, Vermont, Colorado and Minnesota, where such legislation has passed one or more chambers.

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