On Friday, Tennessee became the fourth state to legalize sports betting in 2019.
Following Gov. Bill Lee failed to sign or veto HB 1 within the allotted time frame, Tennessee joined Montana, Indiana and Iowa as the four states to legalize the activity this year.
The bill is the first to only permit on-line sports betting. Other states have legalized on-line sports betting through separate bills, but they always function in partnerships with brick-and-mortar locations.
The Volunteer State does not possess a single casino within the state and Lee is staunchly opposed to gambling within the state. He did, however, let the bill pass via inaction.
“I don’t think the expansion of gambling through online sports betting is within the best interest of our state, but I appreciate the General Assembly’s efforts to eliminate brick and mortar establishments,” Lee’s statement on Twitter study. “This bill in the end didn’t pursue casinos, the most dangerous form of gambling, which I believe prey on poverty and encourage criminal activity.”
As long as Lee is in workplace, this will nearly definitely be the only type of gambling legally permitted within the state.
“Let me be clear: any future efforts to expand gambling or introduce casinos in Tennessee will assure my veto,” said Lee in his statement.
Tennessee also becomes the very first state to force operators to make use of official data from the leagues. Whilst it hasn’t been addressed specifically in the legislation, it will most likely finish up with integrity charges paid to the leagues.
Under the law, operators will probably be paying a $750,000 annual charge and can have their income taxed at 20 %. The bill officially becomes law of the land on July 1, at which point the Lottery commission will begin to draft regulations for the market. It’ll act as the regulatory physique for sports betting.
Initial projections are estimating yearly revenues of $254 million for sports betting operators. These estimates assume every adult and also the three.five million vacationers will produce about $30 in sports betting revenue. If these figures are correct, the state will take in about $50 million in additional tax income.