Tennessee became the 19th state to legalize sports betting, and a new study by Oxford Economics claims that could result in up to 4.5 million dollars of revenue every year! The government passed the legislation in May of last year to allow sports betting in the state of Tennessee, but citizens couldn’t place their first bet until November of this year due to regulations needing to be put in place.
“We have spent considerable effort — and, frankly, money — being very focused on our customers,” Matt Raffensperger, chief marketing officer for Fanduel, said in a statement, “from a sports perspective in Tennessee, there is a lot of excitement. Mobile wagering offers sports fans in Tennessee an option when they watch a game at home or are traveling in-state with friends or family members to safely watch a game.”
The law states that 80% of the tax revenue raised from sports betting in Tennessee will go to help fund education; 15% will be allotted for local government infrastructure projects, and 5% will go towards improving mental health in the state. The state will also focus some of the funds on gambling addiction and substance abuse help, which could end up helping a lot of people.
Four companies legally allowed to offer online sports betting
Fanduel, Draftkings, Bet MGM, and Tennessee Action 24/7 were all given licenses to run sports betting in the state, but other companies are welcome to throw their hat in the ring as well. While citizens are ultimately happy that they sports bet online, some are calling into question the state’s decision to place a 90% earnings cap on all wagers placed on Tennessee Action 24/7. This means that 10% of a person’s winningest from a bet goes to the company.
Also, unlike most other states that have legalized gambling, Tennessee doesn’t offer any casinos or racetracks to place bets on. The state hasn’t even legalized physical sports betting vendors, which means that sports betting in the state are 100% virtual. All someone needs to take part in the fun is a mobile, a laptop, or a tablet.
Lastly, bettors should be aware that while sports betting will be offered in the state, prop bets will not be a part of the deal. This means that things like betting on a team’s rushing yards per game or how many touchdowns a player throws will not be allowed. The claim is that this is to help protect the integrity of the game, but who knows if lawmakers will eventually change their mind.
Although this might all be exciting to take in, several websites are warning citizens in the volunteer state not to get involved with shady vendors or third-party offshore sites. Lawmakers also want residents to remember that any organization that isn’t Fanduel, Draft Kings, Bet MGM, or Tennessee Action 24/7, does not have permission to operate sports betting in the state.
What gamblers should know going forward.
The law states that to participate in sports betting, a citizen must be 21 years old and physically in the state of Tennessee. The law also states that non-Tennessee citizens can gamble in the state, which might encourage people from Kentucky, Georgia, and Alabama to cross the border and have some fun on game day.
“I think you’re going to see people traveling into Tennessee from Alabama, Georgia. sports betting analyst, Brian Pempus, said during an interview regarding the new legislation” If you live close to those border town, maybe you’ll see those license plates come over to a local bar or restaurant.”
In the end, it’s nice to see the state find other ways to make up revenue and help fund education in the process, but who knows whether it will be effective or not. In fact, with the ongoing pandemic still hurting people in the pocketbook, and another shutdown possibly coming, is it possible for the state to overcome this and prosper in their new sports betting endeavor?