Tennessee Sports Betting Will Feature Dreaded Payout Cap
Once appearing to be among the most enticing states in which to place sports bets, Tennessee gamblers may be out of luck if they are looking for a lucrative pay day.
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It seems that the Lottery mandates operators to keep 10% of handle in effort to ensure more revenue for state.
This means less attractive lines. Serious sports bettors probably won't stick around too long.
Looks like the Tennessee sports betting scene is gonna be about as nationally relevant as their football program
— Matt Lindeman (@lindetrain) April 15, 2020
What did Tennessee?
— Captain Jack Andrews (@capjack2000) April 10, 2020
Not the same thing Arkansas.
TN: 10% mandatory hold, $750k annual license, 20% tax
AR: $250k annual license, 13% tax
10% hold = -125/-125 on two-sided lines.
Congratulations Southland Racing in West Memphis, AR. You'll see plenty of business!
Jill R. Dorson of Sports Handle surmises:
In essence, the cap may well accomplish exactly the opposite of what lawmaker and operators alike want from legal sports betting — allow the black market to thrive, and also depress legal sports betting participation, ultimately reducing the operator taxable revenue tabbed to benefit in-state education funds.
Operators will be penalized should they fail to meet the 10% cap, to the tune of $25,000 fines no less.
This hasn't stopped operators from applying for licenses. To date, four operators and approximately 20 vendors and suppliers have done so.
Tennessee is unique in that the state does not offer any land-based casinos. Sports betting will all take place via the Internet.
The state is hoping to have wagering go live by November 1.
- Gilbert Horowitz, Gambling911.com
