The Volunteer State announced this weekend that it would have sports betting live this summer. Governor Bill Lee passed a sports betting bill into law in May of 2019. There have been several modifications to the bill in the last year.
It’s been a very arduous process, according to the Tennessee lawmakers that worked on the bill and the constant changes that were required. The exact modifications that have been made to the bill will be released to the public on April 25.
Some lawmakers are nervous ahead of the release of the final rules and regulations of the sports betting bill. Some are expecting some negativity as a result of the changes that have been made.
One of the biggest changes to the sports betting bill concerns the amount a player can will. The cap is now set at 90%, which may be concerning to some members of the public.
This 10% hold that the state gets is the highest amount in the country and could be a source of some backlash. New Jersey’s hold rate is 7% since it launched sports betting in 2018.
Tennessee’s Hold Will Be Highest In The Country
Nevada has had sports betting legal since 1949, and overall, gambling became legal in 1939, taking the market out of the hands of organized crime. The hold amount in Nevada for sports betting has remained steady at 5%.
The 10% hold is something that was a bit of compromise, sports betting advocates in the state said. If it meant having a higher hold percentage versus not being able to launch sports betting, the hold amount was the compromise, according to a source.
For example, if a player made a $125 bet, the most they could win would be $100. State officials are concerned that the presumed revenue for the state may be much lower than the original forecasts. There is no way the state can bring in the type of revenue that New Jersey, Pennsylvania, and Indiana do, as those states have much lower hold percentages.
License Fees Much Higher Than Some States
Another issue in the sports betting industry in Tennessee is the exorbitant fee to acquire a sports betting license. The fee for a license in the state is $750,000 and a 20% tax rate. The license fee is still lower than some states and more than others.
In New Jersey, the fee for a sports betting license is $100,000, which is also the fee in Indiana. In Iowa, it’s only $45,000, while in Illinois, the fee for an online sports betting application is $20 million, and the New Jersey fee is $10 million.
The Tennessee Lottery will be overseeing sports betting operations in the state. According to Lottery officials, sports betting operators can start applying for sports betting licenses next week.