Two bills legalizing sports betting, HB 666 and SB 1055, have been in filed in the Tennessee legislatures. State Senator Steve Dickerson said he believes thousands of people—possibly more—“are actively engaged in some form of online betting.” Under the measure, cities with a population of 167,000 or larger could opt to hold a referendum to allow sports betting.
The legislation would authorize developing a framework to generate state and local tax revenue from sports wagering, which would be taxed at 10 percent. Revenue would go to pre-K through 12th-grade education. Municipalities also could enact a 2 percent tax.
In addition, the bill would establish a state sports wagering commission housed in the Department of Tourism. The commission would administer a gambling addiction treatment program, offer dispute resolution services for complaints against operators and more. Operators who violate provisions of the law would face civil penalties of $5,000-$50,000. Dickerson said, “What I’m committed to is that it be a level and open playing field. I will not propose any bill or bring a bill to vote that favors one vendor over another.”
Earlier, state Rep. Rick Staples filed a similar sports betting bill, the first bill in the session, sponsored in the Senate by state Senator Raumesh Akbari. One of the differences between the bills is that Staples’ would divide the 10 percent tax among the state general fund, capital projects at Tennessee colleges of applied technologies and community colleges and local education and infrastructure.
Players must be at least 21 years old. State figures estimate about 5 million residents would be eligible to participate.
At least 50 sports betting licenses initially would be issued at a nonrefundable annual fee of $7,500. Forecasts indicate sports betting could generate another $5.9 million for the state’s general fund annually, along with $4.5 million a year for the Tennessee Board of Regents. The bill’s fiscal impact statement says, “This Act will result in additional jobs and consumption expenditures within the economy, both ultimately resulting in a recurring increase in sales tax revenue collected by state and local government.”
If the bill passes, it would take effect July 1. However, it faces considerable pushback. Governor Bill Lee has said he is morally opposed to gambling. And state Rep. Timothy Hill said, “I think it has a tough road ahead at this point.”
