In Tennessee the Departments & Agencies Subcommittee recently passed House Bill 1, which would allow mobile sports betting and in-person non-traditional sports books since the state has no casinos or racetracks. Local referendums would be required under special elections or in general elections. The state Attorney General’s office said a statewide referendum would not be required for a constitutional amendment.
The bill’s sponsor, state Rep. Rick Staples, said it was “a work in progress.” Lawmakers still are considering a provision requiring bettors to set up accounts in person. A provision in the 23-page bill states, “Prior to placing a wager with a licensee through a remote kiosk or via interactive sports wagering, a bettor shall register with the licensee in person and attest that the bettor meets the requirements to place a wager with a licensee in this state.” Projections estimate Tennessee would receive $148.7 million in annual revenue for licensed operators if bettors are allowed to register remotely.
Based on the proposed tax rate of 10 percent, Tennessee could take in $15 million annually in tax benefits. With a hold of 5 percent, the state could expect $3 billion in annual handle, analysts said. In addition, annual licensing fees of $7,500 would bring in another $375,000 a year, with an estimated minimum of 50 retail sports betting locations.
One complication for the bill is Governor Bill Lee’s strong opposition to gambling. In fact, Lee has had an impact on two gambling bills. State Rep. Larry Miller’s HJR 130, which proposed a constitutional amendment to authorize casino, recently was taken off notice. Miller said a liaison person from Lee’s office visited him to say the office had “flagged” the bill. Miller’s HJR 142, which would authorize a study of the financial impact of legalized gambling in adjacent states on Tennessee, also was delayed. Miller said his decision to delay its consideration also was related to the governor’s emissary’s message.
“It just seemed to me that this was not a good moment to be asking for a decision on measures involving gambling. I’m going to try to build up some more momentum,” Miller said.
