The Tennessee House recently voted 58-37 to pass HB 1, which would legalize sports betting after the measure barely cleared the House Ways and Means Committee in a 10-9 vote. The Senate Finance Committee passed the legislation which now goes to the full Senate.
HB 1 changed significantly since it first was introduced. The annual license fee rose from $7,500 to $750,000 and the tax rate increased from 10 to 20 percent, with the possibility of rising to 22.5 percent. Only online wagering will be allowed, and the limit of 10 licenses was removed in favor of no limit. Also, official data will be required for in-play betting. A report indicated sports betting would generate $50 million in annual revenue, with $40 million for the lottery fund that goes toward education, including college scholarships; $7 million for grants for nonprofits and local governments; and $2 million for mental health services, including addiction.
During the House committee debate, while questioning state Rep. Rick Staples, who is African American, state Rep. Andy Holt, who is white, said, “Well, I personally believe–and I think there are others on this committee who believe–that this legislation has been rushed through. I believe that the potential ramifications of this legislation are life altering. I believe that the state is playing into that addiction, unfortunately.”
Holt previously attracted media coverage for refusing to cancel a giveaway of an AR-15 after the Orlando mass shooting in 2016 and for wanting to fine Memphis “millions of dollars” for removing Confederate monuments last year. Staples recently resigned a House caucus leadership position after violating the chamber’s sexual harassment policy.
In response to Holt’s comment, Staples said, “Let me say to the chair’s comments, whom I respect and appreciate. We spent seven weeks vetting this legislation, dealing with the AG, stakeholders, other interested parties, several individuals. We addressed committee members’ issues. We had a lot of meetings and dialogues. We were truly, truly vetted in the Policy Committee, and we present a document coming out of that Policy Committee that has a strong, positive fiscal note. We’ve worked really hard for right at a year to make sure we would have a good document to present before this legislative body.” He added, “Currently without this piece of legislation, online gaming is taking place in this state, and those dollars are going to offshore accounts.”
Republican Governor Bill Lee has expressed opposition to expanded gambling and said his administration tries to align legislation with his views. However, House Speaker Glen Casada, who voted for the bill, said he does not expect Lee to veto it. “It’s something that is currently being done by an overwhelming number of citizens in the state, so at least this way there’s some regulation and some oversight into it, versus right now, it’s done without those things,” Casada said.
DraftKings recently set up a website titled “Let Tennessee Bet,” noting without the legislation, money would continue to “flow to illegal offshore bookies instead of staying in Tennessee as a revenue source.”
