Tennessee Governor Bill Lee has said he’ll let an online-only sports betting bill become law without his signature. Analysts estimate the new sports betting industry will generate $254 million in annual revenue, much of it from the projected 3.52 million visiting sports wagerers who already visit the state and who are expected to generate on average $30 in annual gross gaming revenue. Projections did not consider visitors who may come to Tennessee strictly for sports betting.
Tennessee share its largest border with Kentucky, where legislation allowing both retail and online and mobile sports wagering failed earlier this year. Observers believe Tennessee sports betting will benefit from Kentucky residents’ familiarity with online and mobile betting on horse races.
Georgians also could drive from Atlanta to Chattanooga in under two hours to enjoy sports betting. Also, the drive from Tuscaloosa, Alabama to Nashville takes under four hours and the University of Alabama is a two and a half hour trip to the Tennessee state line.
To the west, Memphis is adjacent to the state lines of Arkansas and Mississippi, where brick-and-mortar sports betting is legal. However, the lack of online and mobile wagering in those states will give Tennessee a built-in advantage. A sportsbook will open soon just outside Memphis in West Memphis, Arkansas and Tunica, Mississippi is a 50-minute drive from Memphis. However, Tennessee could attract sports betting dollars away from Mississippi, where on-site-only sports betting is allowed. Competition from Tennessee could lead to Mississippi legalizing online and mobile betting in the next legislative session.
Additionally, Missouri to the northwest is considering sports wagering and has a casino on the state line.
Tennessee has an advantage of allowing sports bettors to set up their accounts online, unlike Iowa, which will require in-person online account registration until January 1, 2021. That’s expected to slow initial growth there and allow offshore sports betting sites to benefit until the industry takes hold in Iowa.
Observers said since Tennessee will receive 20 percent of sports betting revenue, it will want visitors to sign up for accounts as soon as possible upon entering the state, possibly at its Welcome Centers located around its borders.
