Categories: News & Updates

Tennessee Sports Betting Looks A Lot Different After Five Years.

When Tennessee’s regulator approved four digital sports betting providers on November 1, 2020, the state made history. Tennessee, the fourth state to debut that year, was the first in the United States to authorize and open just digital sports betting sites.

BetMGM, DraftKings, FanDuel, and Tennessee Action 24/7 were the first four operators to launch, with Action 24/7 becoming the first totally owned sportsbook in the United States.

The launch in Tennessee marked the end of a busy year for sports betting in the United States. Four of the six states that authorized it did so through ballot initiatives. Voters in Louisiana, Maryland, Nebraska, and South Dakota legalized at the polls, while state legislators in Virginia (retail and online wagering) and Washington (in-person betting only) legalized. Additionally, the majority of operators in Colorado, Illinois, and Washington, D.C. went live before those in Tennessee.

ALSO READ: As Kalshi seeks to avoid the same fate, Crypto.com closes access to sports contracts in Nevada.

Legislators in Vermont and Wyoming have adopted a similar structure since Tennessee’s digital-only launch. Twelve operators are currently providing legal gambling in the Volunteer State after five years.

The state’s legislative and regulatory framework has also undergone significant modifications. Specifically, a 10% hold cap was eliminated, the Tennessee Education Lottery was replaced as the regulator by the Sports Wagering Council (SWC), and the 20% flat tax on adjusted gross revenue was replaced with a 1.85% handle tax. The only state in the union that still taxes operators based on handle rather than revenue is Tennessee.

This year’s new rules for ethical gaming

The SWC changed its responsible gambling regulations in May, requiring operators to terminate accounts right away after five unsuccessful deposit attempts within 30 minutes and to warn customers before enforcing a betting restriction. The modified definitions of certain terminology related to responsible gaming are also included in the new regulations. The SWC is also active on social media, sharing stories concerning gambling addiction, directing users to its regulations, and providing advice on responsible gaming.

Courtesy: https://www.covers.com, https://www.casino.org, https://pechanga.net

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