Reiterating he is “philosophically opposed to gambling” but aware that “compromise is a central part of governing,” Tennessee Governor Bill Lee allowed HB 1, the Tennessee Sports Gaming Act, to become law without his signature. Lee said, “I do not believe the expansion of gambling through online sports betting is in the best interest of our state, but I appreciate the General Assembly’s efforts to remove brick and mortar establishments. This bill ultimately did not pursue casinos, the most harmful form of gambling, which I believe prey on poverty and encourage criminal activity.”
Lee added he and lawmakers “see this issue differently but let me be clear: any future efforts to expand gambling or introduce casinos in Tennessee will assure my veto.”
Tennessee will be the fourth state, after Montana, Indiana and Iowa, to legalize sports betting, effective July 1, but it will be the first state to allow online-only sports betting. The legislation is estimated to generate $50 million annually.
The Tennessee Lottery will regulate sports betting. Lee preferred that agency over creating a new Tennessee Gaming Commission which he feared could lead to future casino legislation.
Sports betting operators will pay $750,000 annually for a license and pay a 20 percent tax on revenue. The law does not restrict the total number of sports betting licenses available. One of the more controversial aspects of the new law is that it’s the first in the U.S. requiring operators to enter into commercial agreements with professional leagues to use official data for in-play betting. The law also allows the leagues to restrict the types of available bets–another first in the U.S.
By the way, Jeopardy phenomenon and professional gambler James Holzhauer, who has won more than $2 million on the game show, commented, “Good on Tennessee for electing a governor who listens. We should all be so lucky. I feel that the quick legalization in many states indicates how popular support has been in favor of it for a long time.”
When placing a bet on sports, Holzhauer said, “I bet mostly straight wagers. I prefer money lines because the team is always trying to win but not always trying to cover, though sometimes the point spread offers superior value. Last NFL season the Las Vegas Superbook held 1 percent of the money bet on straight NFL wagers, versus 15 percent of parlay and teaser money. There are only very specific situations when these exotic bets make sense.”
Holzhauer noted, “I’ve driven through Tennessee but have not really spent time there. The Smokies have invited me to be their GM for a day, so maybe I will be there soon.”
