Tennessee’s sports betting law took effect July 1, but regulators still are crafting the legal framework for it. An advisory council on sports wagering also has to be created, as mandated under the legislation. The regulations could be in place by the end of the year, followed by licensing and then testing, including the geofenced online and mobile platforms in-state bettors will be allowed to use and assuring players are age 21 or older.
Following all those steps, online and mobile sports wagering is likely to be offered in the first half of 2020. Analysts estimated annual sports wagering revenue could surpass $254.6 million, including $8 million for local communities.
The sports wagering bill passed the legislature and was returned by the governor without a signature. Originally it called for up to 50 brick-and-mortar sports-betting locations across the state, but that provision was removed in committee hearings. As a result, the bill authorized only online/mobile sports betting—the first legislation of its kind in the U.S.
State Rep. Jason Hodges said, “I would have liked to have seen brick-and-mortar make the cut as well, but we can keep pushing for that in the future. Hopefully this is just a first step. Local communities really depend on brick-and-mortar for real tax revenue. The majority of their taxes come from property taxes.”
However, in allowing the bill to become law without his signature, Governor Bill Lee said, “I do not believe the expansion of gambling through online sports betting is in the best interest of our state. I appreciate the General Assembly’s efforts to remove brick-and-mortar establishments. The bill ultimately did not pursue casinos, the most harmful form of gambling, which I believe prey on poverty and encourage criminal activity.” He added, “Let me be clear: any future efforts to expand gambling or introduce casinos to Tennessee will assure my veto.”
As a result, it’s unlikely Hodges and his colleagues can pass a brick-and-mortar sports betting measure until Lee is out of office.
