It can’t be an easy task to implement major legislation such as legalized sports gambling, but some states have figured out how to take care of business within a matter of just a few months, allowing them to get up and running quickly. Tennessee can’t be included in that group, as it is still waiting to launch legalized sports gambling. The Volunteer State approved the activity in July of last year, and then thought it would be able to see the launch of regulated sportsbooks by February. However, it would be April before regulations were approved by the Tennessee Education Lottery’s (TEL) Sports Wagering Advisory Council, and the process has been moving slower than molasses ever since. It looks like the state is finally ready to get going and has a projected start date for legalized sports gambling; however, it comes right after most major sports leagues in the US will have wrapped up their seasons.
According to Rebecca Hargrove, the president and CEO of the TEL, legalized sportsbooks will start appearing on the digital landscape as of November 1. The state will be the first to offer a completely virtual sports gambling experience, since no brick-and-mortar casinos exist in Tennessee. If that timetable remains intact, by the time the first wagers are able to be placed, the NBA, the NHL and MLB will have completed their runs and found their season champions. What would remain are the NFL, which is a huge target, and MLS, which is expected to complete its season in December.
There are reportedly four sportsbooks already with their hand on the switch to go hot as soon as they’re allowed to start taking bets. They haven’t been identified yet, but it’s likely the state will see the normal players – DraftKings, FanDuel, BetMGM and, possibly, FOX Bet. Others have indicated they have an interest in the market, but everyone first has to get over the $750,000 license fee and outrageous hold caps (10%) the state has put in place. With COVID-19 causing cash shortages, some operators may have to bring in partners to foot the bill.
Also troublesome for entry are the tax rate of 20% and the requirement that sportsbooks use official league data in creating their lines. This implies an additional expense, and surfaced as a way for leagues to make money after states began to scoff at the idea of paying them an “integrity fee.”
It’s been just over a year since Tennessee legislators were able to see their sports gambling efforts come to fruition, only because the state’s governor, Bill Lee, wouldn’t take a stand. Since then, six states – Colorado, Illinois, Iowa, Michigan, Montana and New Hampshire – have all legalized and launched their sports gambling markets. Tennessee is well behind and is going to miss out on a serious amount of revenue it could have earned throughout the sports reboots, but at least it will be able to pick up the NFL and future sports seasons.
