Regulations Only Thing Holding Back TN Bettors From Sports Betting

• Governor Bill Lee did not sign the sports betting measure but allowed it to become law.
• Legislators are unsure of a specific launch date, with answers ranging from mid-NFL season to mid-NBA season.
• Tennessee’s licensing fee of $750,000 marks the highest fee in the nation.

NASHVILLE, Tenn. – Sports betting in Tennessee is officially live as of Monday; however, don’t expect to start seeing the industry take over just yet.

The Tennessee Sports Gaming Act, or HB 1 in the Tennessee legislature, requires a few steps before the first bet can be placed and accepted.

According to the bill’s text, the Tennessee Education Lottery Corporation must first set regulations regarding online sports betting. In addition to the regulations, the lottery must also create a licensing protocol that potential sportsbooks must follow in order to be able to legally take action on sporting events.

Currently, the potential books will have to pay a $750,000 fee to be granted their licenses, which only covers 1 year of action. The measure also requires that assistance shall be given by a 9-person advisory council that is created aside from the lottery. Therefore, additional requirements may be enforced as the two boards work on the details.

There is not much to know about what Tennessee sports betting will look like when it does officially launch; however, the basics are easy to point out:

• Online wagering only (with the potential of land-based through a voter referendum).
• Bettors must be 21 to participate in the new gambling activity.
• Wagers can only be accepted while bettors are located in-state, per the Interstate Wire Act.
• Bets will be accepted on pro and collegiate games with the exception of collegiate prop betting.
• Books must attain official league data if they plan to offer live, in-play betting.
• The sportsbooks’ income will be taxed at 20% and paid to the lottery each month.
• Of the taxes, 80% goes to education, 15% to infrastructure, and 5% to problem gambling.

“This is a historical piece of legislation that passed, said bill sponsor, Representative Rick Staples (D- Knoxville). “We just want to get it right.”

Staples believes that the regulations will be implemented in time for bettors to enjoy action on some of the NFL season; however, other legislators believe the launch will occur sometime in early 2020.

As for FanDuel and DraftKings, there have been no mentions by either about their opportunity to build a market in a new state. However, these two online sports betting market leaders in New Jersey will likely gain similar control in Tennessee.

News tags: DraftKings | FanDuel | mobile betting | New Jersey | NFL | Rep. Rick Staples | Tennessee | Tennessee Education Lottery Corporation | Tennessee Sports Gaming Act | TN HB 1