Sports betting will be legal in Tennessee starting July 1. Governor Bill Lee has said he will allow a sports betting bill passed by the House and Senate to become law without his signature. The law will all wagers to be placed online only. Tennessee does not have casinos nor will kiosks be allowed at other locations.
Cody Havard, associate professor of sport commerce at the University of Memphis, said, “The fact that it would be online only or mobile only would be further attractive to especially the younger consumer, because everyone is on their phone now anyway. I understand the appeal of walking into a casino or walking into a sportsbook to place a bet, but I don’t know if that is as important to younger consumers.”
Under the new law, sports betting operators will pay a $50,000 application fee, plus a $750,000 annual licensing fee. Bettors age 21 and older may place wagers online or through phone apps; they must be physical within the state, which will be monitored by geofencing. In addition, prop bets will be banned during college games. Sports betting operators will be required to use official league data in regard to those bets.
Operators’ adjust gross income will be taxed at 20 percent. That revenue is estimated to generate $50 million annually for education, infrastructure projects and problem gambling services.
In a statement, the National Basketball Association’s Memphis Grizzlies organization said it welcomes legalized sports betting as a “new opportunity for economic growth and fan engagement.” The National Hockey League’s Nashville Predators Chief Executive Officer Sean Henry added doing nothing while other states pass sports betting measures would be a missed opportunity; legalizing sports betting will help raise more revenue for Tennessee schools, he said.
The National Football League’s Tennessee Titans Chief Executive Officer Steve Underwood said while he’s pleased the legislature passed sports betting laws, he’s concerned about its impact on the integrity of games.
“What can we do to make sure that we protect public confidence in our game and make sure that only official data is used to determine the outcome of bets?” Underwood said.
University officials also expressed concern about oversight at individual institutions. Middle Tennessee University Athletic Director Chris Massaro said, “All of us would have to beef up our compliance departments. What we don’t want is to have some kind of gambling or fixing scandal at one of our universities. I think that would be very damaging.”
University of Tennessee Athletic Director Phillip Fulmer said in a statement that UT is working with its Office of Government Relations “to gain a thorough understanding” of how legal sports betting will affect UT athletics. “As we learn more, we’ll be deliberate about properly educating student-athletes and staff to ensure compliance,” Fulmer said.
And the Vanderbilt University athletic department issued a statement noting athletes, coaches and department staff receive compliance education that includes sports betting.
