sports gaming

$27M in online wagers placed in first week of Tennessee sports gaming

Bettors placed $27 million worth of wagers in the first week after the launch of only sports gambling in Tennessee.

Tennessee Lottery head Rebecca Hargrove said Monday that sportsbooks paid out $23.9 million, leaving them with an adjusted gross income of $2.5 million for the period covering Nov. 1 through Nov. 8. The state’s tax on that amount totaled $509,000.

Of those tax collections, 80% will be deposited into the Lottery’s education account, 15% goes to cities and counties on a per-capita basis, and 5% is dedicated to gambling addiction treatment programs within the state Department of Mental Health.

Most of the betting action has focused on football, with 60% of wagers placed on the NFL and 40% on college games.

Four sportsbooks are operational in Tennessee: BetMGM, DraftKings, FanDuel, and Tennessee Action 24/7. Hargrove said three more are in the process of applying and hoping to get up and running by the end of the year: Churchill Downs, William Hill, and WIN Interactive.

Speakers seek delay of sports gambling in Tennessee amid questions about draft rules

Senate Speaker Randy McNally and House Speaker Cameron Sexton await Gov. Bill Lee’s arrival for his second State of the State address in Nashville on Feb. 3, 2020. (Erik Schelzig, Tennessee Journal)

Legislative leaders want the Tennessee Lottery to delay the approval of sports gambling rules. Senate Speaker Randy McNally (R-Oak Ridge) and House Speaker Cameron Sexton (R-Crossville) wrote in a letter to Lottery Chair Susan Lanigan on Friday that some of the draft rules are outside the scope of the gaming law passed last year.

Here is the text of the letter:

Dear Ms. Lanigan,
We would respectfully request that the Tennessee Education Lottery Corporation Board of Directors and the Sports Wagering Advisory Council delay voting on the rules to implement the “Tennessee Sports Gaming Act.”

There have been concerns brought to our attention that some of the rules, as drafted, may be outside the authority given to the Board or Council pursuant to the “Tennessee Sports Gaming Act.” For example, there is concern that the additional categories of licenses created within the rules aren’t within the scope or authority of the Board or Council under the “Tennessee Sports Gaming Act.” Specifically, the Sports Pool Intermediary License and the Vendor License, and associated fees, are not authorized in the Act.

Please feel free to contact our office with any questions you have regarding this letter,

Thank you for your consideration.
Sincerely,

/signed/
Lt. Governor Randy McNally, Speaker Cameron Sexton