Tennessee Online Sports Betting to Bring Millions in Tax Revenue

Tennessee Online Sports Betting to Bring Millions in Tax Revenue

The Tennessee gambling industry is preparing for a big breakthrough as it becomes the 19th state in the US to legalize online sports gambling on Sunday. According to analysts, the newest industry in the state could bring millions of dollars in annual taxes for the state as the market matures.

What does the industry expect?

The state legislators passed the state’s sports gambling law in July 2019, without Governor Bill Lee’s signature, which opened up the online-only market in Tennessee. The lawmakers anticipate an annual industry yield of around $50 million. These funds will be used for local government, education, and for treatment of gambling addiction.

Tennessee Online Sports Betting to Bring Millions in Tax Revenue

On Sunday, the state will witness the launch of four sportsbooks. Three more approvals are pending from the Tennessee Education Lottery Corporation. Some analysts believe that the eventual annual yield of the market could be as high as $100 million.

Is the goal attainable?

Tennessee has a very unique approach to sports betting because of which there are several variables in the state that need to show decisive patterns. For instance, it is the first state in the US to go for an online-only sports betting industry that is not tied to any physical location or casinos. The state has also limited the number of licenses that it will issue.

The state also requires gambling operators to hold 10% of the amount they accept in wagers which could increase the amount that operators take from bettors’ winnings. In other states, the holds are limited between 5% and 6% because of which the bettors pay slightly lesser from their winnings.

PlayTenn.com’s managing editor Jessica Welman commented on the industry and said,

“I cannot stress (enough), there is not a market that looks like Tennessee, or something that’s even kind of close to what Tennessee looks like. I’m just excited to see, once we start getting revenue numbers in, how this is going to shake out.”

The site predicts that Tennessee sportsbooks could generate $6 billion in sports betting handles each year upon reaching maturity, which would lead to a $120 million tax revenue.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.