SportsBettingInTennessee.com

No Casinos? No Problem. Tennessee Sports Betting Is Going Mobile

Michael Molter — Fri, 03 May 2019 20:47:00 +0000

Legislators have agreed upon terms for sports betting in Tennessee.
Without casinos, only mobile betting would be permitted under the bill.
Governor Lee has decided not to sign the measure, nor veto it.

NASHVILLE, Tenn. – In one of the closer votes we have seen across the country, Tennessee lawmakers have decided to move forward with implementing legal sports betting laws in Tennessee.

By a vote of 19 to 12 in the Senate and 51 to 40 in the House (where 50 votes are required for passage), Tennessee Senate Bill 16 will be sent to Governor Bill Lee’s office for his signature to become law.

The anti-gambling Governor, however, has expressed his plan to not sign the bill, though he will not veto it either, allowing it to come into effect anyway.

Under the provisions of the bill for sports betting in Tennessee, mobile wagering would begin at the beginning of July, without any retail locations to back up the online sportsbooks.

Tennessee will become the first state to adopt such a policy, where those who are at least 21 can participate in the hobby.

Certain individuals would be excluded from betting, such as those who are athletes (and their family members), those having confidential information about athletes, and athletic administrators.

Technology would also be put in place to ensure underage bettors cannot access the platform or enter wagers.

Wagering options will be limited; however, the state will implement full-service sportsbooks, only removing the ability for prop betting on collegiate athletes.

These bets on a players’ individual performances are not seen as the easiest way to influence the outcome of a game but can make for difficult situations for the unpaid student-athletes. Therefore, the state decided to completely remove the option so collegiate athletes and big-time gamblers couldn’t create a scandal for the state.

Though revenue numbers in legal sports betting states have been failing to hit their projections throughout the country, Tennessee has their eyes set on a $50 million a year prize, in the form of tax contributions.

Fund will be broken down into three main categories: education, infrastructure, and gambling addiction services. It is believed that 80% of the contributions will head to the lottery, who provide college scholarships to residents of the state. Local governments will receive roughly 15% of the funds to support the infrastructure projects about their towns and the remaining 5% will be left for mental health services.

Tennessee now joins the likes of Indiana, Iowa, and Montana, who are all awaiting their governor’s confirmation (or veto timeline to pass) to enact their bills into law.

Assuming all four of these states move forward with legalization, the total number of states with laws supporting a legal sports betting industry will increase to 14.

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Tennessee Sports Betting Bill To Become Law In 10 Days

Daniel Borjas — Wed, 01 May 2019 20:46:00 +0000

SB 16/HB 1 has passed both chambers of the TN legislature and heads to the governor’s desk.
Gov. Bill Lee (R) will not veto nor sign the bill, allowing it to become law within 10 days.
The legislation would legalize statewide online betting and kiosk-based retail betting stations.

NASHVILLE, Tenn. – Tennessee Gov. Bill Lee (R) is taking a page out of West Virginia’s (sports)book, as sports wagering bill SB 16 (aka HB 1) – passed by the state legislature on Tuesday – will be allowed to become law without his signature.

Unlike the conflict of interest cited by West Virginia Gov. Jim Justice (who owns The Greenbrier, a major beneficiary of legal sports betting), Lee’s abstention is based on his political and social beliefs about sports betting in general.

Lee’s press secretary, Laine Arnold, clarified the former’s position in no uncertain terms.

“The governor has said he does not believe that the expansion of gambling is best, but he recognizes that many in the legislature found this to be an issue they want to explore further. He plans to let this become law without his signature.”

Unlike most states, Tennessee’s legislation is veto-proof with a simple majority (i.e. 51 percent) of the vote in each chamber. As Lee did not have a meaningful veto in his arsenal, his decision to let the law take effect sans signature is a symbolic gesture to the anti-gambling constituents among his base.

That said, by most states’ standards, the support for legal sports betting in Tennessee hasn’t been overwhelming. In the majority of the country, the legislation would not have been veto-proof.

After the House passed HB 1 by a vote of 58-37 (61 percent) last Wednesday, the vote went to the Senate, where the bill – as SB 16 – was amended and passed by a vote of 19-12 (61 percent).

The House then reviewed and passed this amended version of the legislation by a vote of 51-40 (56 percent).

The bill now heads to the governor’s desk, where it will sit for 10 days (excepting Sundays) before it automatically becomes law. Per this schedule, Tennessee sports betting should become formally legal on Saturday, May 11.

Nevertheless, the bill has a built-in buffer, pegging July 1 as the first official day for legal Tennessee sports wagering.

It will likely take several weeks or months for the various online and kiosk-based books to get up and running, though all the pieces should be in place in time for the start of the lucrative NFL betting season in September.

What The Tennessee Sports Betting Market Will Look Like

There are a few key points of the impending law that will be of particular import to resident Tennessee bettors. First and foremost, SB 16/HB 1 only allows for online sports betting.

Brick-and-mortar betting at retail locations was amended out of the proposal. However, this is not a significant concern, as there are no physical commercial or tribal casinos in the state.

The legislation does allow for the operation of remote kiosks, which are effectively terminals for online wagering and which can be deployed at a number of authorized, third-party retail storefronts.

Under the terms of SB 16/HB 1, licensees will pay the newly-formed Tennessee Gaming Commission. This will be a nine-member body within the larger Tennessee Lottery Commission.

The commission will handle industry oversight and administrate license approvals and other critical management functions related to sports betting in Tennessee.

The initial license fee for any sportsbook operator to provide its services in the state is a reasonable $50,000. However, the annual license renewal fees are comparatively high, requiring a yearly payment to the state of $750,000. Further, the state will levy a 20% “privilege tax” on gross sportsbook revenue.

The proposal seems to allow for statewide mobile sports betting, and the legal age to participate is set at 21 years old, both for online and kiosk-based wagering.

Bill sponsors Sen. Steven Dickerson (R-Nashville) and Rep. Rick Staples (D-Knoxville) estimate that in a mature market, SB 16/HB 1 will generate annual revenues for the state in excess of $50 million.

This more or less jibes with the American Gaming Association/Oxford Economics 2017 report. This research estimates that Tennessee, with widespread betting availability and a high tax rate, would produce $41 million in revenue by 2023 (see page 65).

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Online Gambling In Tennessee Passes Into Law

Michael Molter — Wed, 01 May 2019 20:44:00 +0000

Tennessee Governor Bill Lee lets sports betting pass into law without signing the bill.
The Tennessee bill passed the Senate with a 19-12 vote.
Online Tennessee sports betting is for those 21 years of age or older.

NASHVILLE, Tenn. – Tennessee Governor Bill Lee declined on signing an online sports betting bill, letting it pass into law by default. This makes Tennessee the only state that has passed an online-only sports betting law. The rest of the states with legal sports betting have brick and mortar locations, or both.

Getting TN SB 16 passed through the Tennessee legislature, however, was a tough road. The bill edged by the Senate with a 19-12 vote and the House with a 58-37 vote. The bill included language prohibiting land-based sportsbooks, so there will only be online sports gambling in the state for the time being.

Iowa, Montana, and Indiana are other states that are close to making a final call on legal sports betting. One of which is awaiting a signature. Governor Bill Lee does not approve of the expansion of gambling but seems to have a slight change of heart for the good of the state.

The tax revenue from online sports betting is expected to bring in a possible $50 million per year. While Governor Lee does not condone sports gambling expansion, he is not against the activity.

“The governor has said he does not believe that the expansion of gambling is best, but he recognizes that many in the legislature found this to be an issue they want to explore further,” said Laine Arnold, Gov. Lee’s press secretary.

Now that the governor has allowed the topic of online sports gambling and the gambling expansion to be explored further with its passing into law, the state can use the tax revenue to benefit the area.

A portion of proceeds from online sports gambling each year will be used for education and local government. Funds will also be allocated to mental health programs. The online tax revenue will fund gambling addiction treatment initiatives for the state.

Sports betting in Tennessee is prohibited for those under 21. The bill also prohibits athletes, sportsbook operators, and team owners from casting sports bets.

Tennessee joins eight other states with legal sports gambling, though it is the first to abide by an Internet-only model. It is unknown what other issues may arise from the newly legalized online sports gambling, but tax revenue from the activity will boost the state's resources now and into the foreseeable future.

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Tennessee Sports Betting Debate Gets Heated

Daniel Borjas — Thu, 25 Apr 2019 20:42:00 +0000

Sports betting bill TN HB 1 passes in the House with 58-37 vote.
The debate over sports betting gets very intense.
Bill is now heading to the Senate for consideration.

NASHVILLE, Tenn. – Tennessee House lawmakers have passed a sports betting bill known as TN HB 1 on Wednesday with a 58-37 vote.

Debate Gets Extreme

The thing that was absolutely made clear about sports betting in Tennessee is not everybody is excited about it. Supporters for the bill said that illegal sports betting is already happening and legalizing it would bring them back to the right side of the law. But opponents against the bill used that phrasing to make comparisons to why they do not like the bill.

Representative Andy Holt said that if they are going to legalize sports betting, they should legalize methamphetamine so they can tax it. This is the same lawmaker that compared sports betting to slavery because people can become addicted to gambling.

He isn’t the only representative to have issues with the bill. Others in the House have said that they are not planning to support the bill because there is an ongoing drug crisis in Tennessee and sports betting would fuel that addiction.

Everyone’s concerns about sports betting did not go unheard, though. Right now, the sports betting bill will have a 20 percent revenue tax for the sports betting operators. Five percent of that is currently planned to be given to the Department of Mental Health and Substance Abuse Services to develop gambling addiction programs.

Bet Anywhere You Want In Tennessee

One of the more unique things about sports betting in Tennessee is where you are going to be able to place your bets. The original bill had originally said that there would be brick-and-motor sportsbooks for people in Tennessee to visit. That part of the bill has actually been removed.

Thanks to that, Tennessee plans to be the first state to have only online and mobile sports betting. Since there will be no physical sportsbooks, the geofencing barrier would be around the state's borders. That means that people in Tennessee will be able to bet on sports no matter where they are in the state.

The Tennessee sports betting bill still has a long path ahead of it. TN HB 1 still has to pass the Senate before it could reach the Governor’s desk. Governor Bill Lee has also voiced that he is against the expansion of sports betting in Tennessee. If all those hurdles can be cleared, people in Tennessee will be allowed to bet on sports no matter where they are.

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Tennessee Sports Betting Bill Continues To Move Forward

Daniel Borjas — Wed, 17 Apr 2019 20:40:00 +0000

TN HB 1 passed a House committee 12-5.
Several changes have been made to the bill ever since it was introduced.
Tennessee could be the first mobile-only sports betting state.

NASHVILLE, Tenn. – A Tennessee sports betting bill passed a House Committee with a 12-5 vote last week.

A House committee passed TN HB 1 that will legalize and regulate sports betting in the state. Several changes were made to the bill ever since it was originally introduced.

Limiting College Betting

Local universities in Tennessee have raised concerns over college sports betting in several committee hearings. The officials say that college students could bribe an athlete during class to shave points.

The committees were initially not responsive to the concerns, but that has now changed. Several amendments were introduced that aims to protect college athletes from bribes. There is a ban on college athletes and some school officials and board members from placing their bets. College students and faculty with access to information are also not allowed to place their bets.

Another amendment that was approved is bettors are not allowed to bet on individual student athletes. Many sportsbooks in the country do not offer prop bets on college games unless it is a big-ticket game. Betting on college games is still on the table.

Only Allow Mobile Sportsbooks

One of the more interesting changes that TN HB 1 has gone through is the removal of brick-and-motor sportsbooks. This means that if the bill were to become law as it is, the only sports betting in Tennessee that would be available is online and on mobile devices.

Language from the land-based sportsbook section is still in the bill. Local communities will have a vote to decide whether or not they will allow sports betting in their area. But since land-based sports betting has been removed and the mobile option is statewide, it is unclear how the elections will really affect sports betting. Local elections might not be held due to this change.

TN HB 1 will also tax sports betting gross revenue at a 10 percent rate. Five percent of that tax revenue will go directly to the Department of Mental Health and Substance Abuse to combat gambling addiction.

Tennessee is looking to be the first state with mobile-only sports betting along with having strong protections for college athletes. The bill will now head to the House Government Operations committee for consideration. The bill still needs to be passed on the general House floor and then go through the Senate before it will reach the governor's desk.

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Tennessee Sports Betting Faces Opposition In The State

Daniel Borjas — Tue, 16 Apr 2019 20:38:00 +0000

Democratic Rep. Johnny Shaw is expressing concern with legal sports betting in the state.
The University of Tennessee shows a negative reaction to sports betting.
Democratic Rep. Rick Staples said 85% of the revenue from the sports betting bill will go to the lottery fund and 15% to local governments.

Sports gambling has been met with joy and excitement in several states throughout the U.S. For Tennessee, sports gambling is having mixed reactions. Lawmakers in the state from both parties are having difficulty deciding on how to write a sports betting bill in Tennessee. This difficulty comes from differing opinions on the subject, causing indecision in the legislature.

Among these opinions is Democratic Representative Johnny Shaw, who expressed concerns about legal online sports betting in the state. Home to the notable University of Tennessee, the school is packed with high-level athletes who could be susceptible to sports gambling.

“I think we’re moving down the wrong path when we start legalizing gambling online,” said Shaw to other legislatures.

The State of Tennessee previously shot for full-on land-based sports gambling in the state but after talks, the plan has transitioned to only online gambling with the state having no brick and mortar sportsbooks. While no land-based sportsbooks could prevent some gambling traffic, online is more prevalent and for college students in this day and age mobile wagering is more accessible than ever.

Tennessee University Director of Policy Analysis Josh Warren is another individual that expressed his concerns about bringing legal sports gambling into the state. More specifically, concern over student athletes.

“These are college students as well,” said Warren to the House Committee at a bill review session on Tuesday. “So, we just want to be very mindful of the surroundings of a college campus.”

Another politician who disliked bringing sports betting to the state currently is Republican Governor Bill Lee. Lee expressed moral issues with sports gambling. With gambling addiction being a serious problem for many bettors around the country, many politicians have concerns over sports gambling’s possible impact on the state.

One of the sports betting bills proposed by Democratic Rep. Rick Staples included language that would legalize sports gambling for people 21 or older and would only include mobile and interactive wagers. No land-based sports book would be available for betting, according to the proposed bill. Also, 85% of the bill’s revenue would go to the lottery fund and 15% percent would go to local governments.

The State of Tennessee, for the time being, looks like it’s got its hands full with deciding how to go about sports gambling for the area. Various lawmakers and politicians have diverse opinions on the subject of sports gambling. They will have to meet on middle ground in order for sports betting in Tennessee to be made legal. Hopefully, with further talks and additional input to deal with how the bill affects residents, a decision can be made for the well-being of the state and its people.

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Republicans And Democrats Now Both Working Towards Legalized Sports Betting In Tennessee

Hasan Nabulsi — Wed, 13 Feb 2019 20:37:00 +0000

NASHVILLE, Tenn. – With the Tennessee Men’s Basketball team ranked first in the country, many in the state are betting on them to win the championship this year. However, legalized sports betting in Tennessee is still in the works with both Democrats and Republicans volunteering to make it happen.

Earlier this month, Republican Senator Steve Dickerson, introduced TN SB 1055 to the Senate floor. At the same time, Democrat House Representative Rick Staples presented TN HB 666 to the House. Together these bills are known as the “Sports Wagering for Stronger Schools Act”.

On Monday both bills were either assigned or referred to other respective subcommittees. Unlike previous bills, the tax revenue that would be collected from sports betting in Tennessee would go to K-12 schools instead of community and technical colleges.

The bill would still only have sports gambling held in cities that voted on it through a county-level voter referendum. It’s because of this compromise that members of both parties are eager to work together and are hopeful to bring their residents what they want.

Other Potential Sports Betting Legislation

Republicans and Democrats are also working towards clarifying more niche sports betting in Tennessee. Bills have been filed to legalize both horse racing in Memphis and office bracket pools state-wide.

TN SB 1057 and TN HB 1033, more commonly known as the “March Madness and Fantasy Football Freedom Act”, would allow for individually run office pools.

The only requirements are that the entry fee isn’t more than $25, the total handle doesn’t add up to be more than $1,000, and that the commissioner doesn’t take a cut from the end results.

While that would make many basketball fans in Knoxville happy, folks in Memphis have their eyes on other pieces of potential legislation. TN HB 1421 and TN SB 0817, known as the “Horse Racing Control Act of 2019”, would authorize the regulation of pari-mutuel wagering in their city.

Many Memphis residents drive over state lines to Mississippi in order to bet on horses, but this Act would help to keep that revenue in-state.

Will Any Of Them Actually Pan Out?

In order for any of these bills to pass they will need to be signed off by the governor. Although, Tennessee Governor Bill Lee spoke out against sports betting during his campaign run last year.

“I think that organized betting frequently develops into organized crime that we don’t need in our state.”

Tennessee law prohibits just about all forms of gambling. The only way to expand gaming is through a county level referendum, but that has happened twice before.

Each of these bills has seen motion in their respective departments this week, and with bipartisan support, many believe that legal sports betting in Tennessee may come later this year.

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