Tennessee Sports Betting: Bill Proposes Tax Reformat Gaining Traction

Tennessee Sports Betting: Bill Proposes Tax Reformat Gaining Traction

Tennessee sports betting

HB 1362, a bill that is seeking to reformat the current taxation framework in the Tennessee sports betting market, has recently been gaining traction in congress.

In May 2019, Tennessee legalized sports wagering following the repeal of PASPA in 2018. Subsequently, on November 1, 2020, the state launched its legal online sports betting market.

As of today, the state requires sports betting operators to pay a 20% tax on sports betting revenue.

In addition, to operate in the state, licensees must comply with license restrictions and pay an initial license price of $750,000, followed by an annual renewal fee of $750,000.

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However, a new bill proposes to alter the present taxation of 20%, with a 10% minimum for sports betting providers. The bill House 1362 was introduced at the end of January of this year.

This week, the Finance, Ways, and Means Subcommittee heard testimony on the bill, which has been building momentum since its introduction.

Legal Sports News states that the idea would alter the taxation paradigm in Tennessee by imposing a tax on sports betting companies’ handles.

All regulated sports betting providers would be subject to a 1.85 percent tax on their handle under Bill 1362. In addition to a fee on the handle, the measure proposes modifications to the official league data.

HR 1362 recommends a revision to the license fees

The initial licensing fee of $750,000 would be maintained, but the renewal fee would fluctuate based on the operator’s handle.

For example, an operator with a handle of $500 million would be liable to an annual renewal cost of $500,000, whereas sports betting operators with a handle of less than $100 million would be subject to an annual renewal price of $250,000.

This is not the first state to attempt to put a handle tax on operators of sports betting. In 2018, a proposal in Kentucky asked for a 3% handle tax. In light of the fact that the state has not yet legalized sports betting, the final taxation system remains unknown. Uncertainty lingers as to whether the initiative in Tennessee will acquire additional traction.

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About Lou De Aguila

Lou Aguila is a news and feature writer for Golden Casino News. For over a decade, Lou has published news and featured articles for some of the most reputable sports betting and online casino sites in the world, including BetNow.UK, VegasOdds, and BWin. Apart from being a hardcore live casino punter, he also covers sports stories in North American leagues from time to time.