In Tennessee, amended sports betting legalization bills have advanced in the Senate and House. The Senate State and Local Government Committee approved sports wagering in a 7-2 vote. The bill now moves to the Senate Finance committee. A companion bill was approved 12-5 in the House State and Local Government Committee and now moves to the House Government Operations Committee.
The sponsor, state Rep. Rick Staples, said, “Billions of dollars leave the state of Tennessee to our neighboring states with casino and table gambling. So this is a new stream of revenue that the federal government is allowing the states to take advantage of.” Studies estimate legal sports betting could generate $150 million annually for the state, with a portion of proceeds going toward education programs and 5 percent dedicated to problem gambling.
The two bills would allow third-party vendors to take online bets; it would not create or permit brick-and-mortar gambling facilities to do the same. Tennessee is one of just a few states with no casinos or similar gaming establishments. However, bettors could not place wagers from anywhere in the state. Local referendums on sports betting would be held if 10 percent of voters want sports betting.
The measures also would make it a misdemeanor for the athletes and team owners involved, sports betting operations owners and managers and others with influence over a game’s outcome to place bets. State Rep. Bob Ramsey said the University of Tennessee and Vanderbilt University requested the legislation ban college athletes, certain school officials and board members, college students and employees with access to certain confidential information and others from placing bets. The bills also would prohibit bets on individual college athlete performance.
House and Senate sponsors of the bills acknowledged they’re still debating several key provisions, including a 10 percent tax rate, with 85 percent of the revenue going to the lottery fund and 15 percent to local governments.
One of the roadblocks to sports betting legislation has been Governor Bill Lee, who, prior to the midterm election, said if he were elected he’d do everything he could to stop any new pro-gambling laws. He has stated he believes there is a strong correlation between gambling and crime. “Organized betting frequently develops into organized crime that we don’t need in our state,” Lee said. However, recently, a spokesperson said, “Governor Lee continues to believe that gambling expansion is not in the best interest of our state. The Lee administration will often work with lawmakers to improve a bill that impacts the state’s economic and social health, even if it’s not something we plan to support.”
State Rep. Johnny Shaw said allowing legal sports betting would tempt college athletes, adding, “I think we’re moving down the wrong path when we start legalizing gambling online. Folks are going to be sitting up in church on Sunday and everywhere else they’re going to be playing. Some things we just don’t do, and money is not everything. The state of Tennessee, if we can save one person, it’s much more important than making a million dollars, is the way I see this.”
If both bills pass on the floors of their respective chambers, they will have to be merged into a single bill that would require re-approval from both houses before the session ends in mid-May. The final step would be for Lee to sign the bill into law.
