- Tennessee lawmakers have passed a new sports betting bill that requires Tennessee sportsbooks to be taxed on the handle rather than revenue.
- The tax model change will result in more tax revenue for the state under Senate Bill 475.
NASHVILLE, Tenn. – Tennessee lawmakers made history on Friday, becoming the first state with legal sports betting to tax sportsbooks on the handle rather than revenue. Senate Bill 475 introduces revisions to Tennessee’s sports betting tax model, including a 1.85% tax for operators on the handle and repealing the 20% tax on revenue.
The unique tax model is expected to bring in over $15 million more in tax revenue per year. The decision comes in response to Tennessee sportsbooks repeatedly failing to hit their minimum 10% hold, leading the state to fall $26 million short on tax revenue.
Rather than continuing to rely on the unpredictability of legal sports betting, Tennessee lawmakers agreed that TN SB 475 will reel in more consistent tax revenue.
The bill also lowers renewal licensing fees for sportsbook operators with smaller handles. Although the initial $750,000 fee will remain, operators with a handle under $100 million will pay $250,000 and operators under $500 million in handle will pay $500,000.
The bill led by Senator John Stevens will have a great impact on the future tax revenue of Tennessee legal sports betting.
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News tags: John Stevens | Tennessee | TN SB 475
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Zach graduated from Florida State University with a degree in Writing, Editing, and Media. Zach is interested in the legalization aspect of sports betting and enjoys participating in DFS. He has a passion for sports writing and most enjoys writing about football and baseball both professional and collegiate.