• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Guide To ‘Risk-Free’ Bets
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Guide To ‘Risk-Free’ Bets
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Tennessee Sports Betting Impresses With First-Week Numbers

Four operators took $27 million in handle during first eight days, which included two NFL Sundays

Jill R. Dorson by Jill R. Dorson
November 16, 2020
in Regulation
tennessee sports betting rules

Neon signs at night along Broadway Street in Nashville, TN (Shutterstock)

Share on FacebookShare on Twitter

Tennessee sports betting operators got off to a strong start, according to Tennessee Education Lottery President and CEO Rebecca Hargrove, who shared Monday that four operators took in $27 million in handle through the first eight days of legal sports betting. On the first day, Nov. 1, which was the an NFL Sunday, operators took in $5.1 million, and Hargrove noted one operator, BetMGM, said the launch “outstripped all other states on the fortnight by 200%.”

Hargrove released those numbers during Monday’s Tennessee Education Lottery Sports Wagering Advisory Council meeting. The TEL Board of Directors is set to meet Tuesday for the first time since the launch.

Because Tennessee has a 90% “payout cap,” which means operators must hold at least 10% of wagers, the state took in $509,000 in tax revenue during the opening week. The tax rate is 20%. Here’s a snapshot of the total numbers for the four live operators: BetMGM, DraftKings, FanDuel and Tennessee Action 24/7:

Nov. 1

  • Handle: $5.1 million
  • Payout to customers: $3.4 million
  • Gross gaming revenue: $800,000
  • Tax revenue: $160,000

Nov. 1-8

  • Handle: $27 million
  • Payout to customers: $23.9 million
  • Gross gaming revenue: $2.5 million
  • Tax revenue: $509,000

Council’s spouses banned from betting

While Tennessee operators are seeing huge interest, the advisory council had other issues to manage. It voted 8-0 to prohibit spouses of council members from wagering on sports in Tennessee, and it had spirited discussion on how to handle fining operators for violations. According to the new law, council members are banned from wagering.

On the subject of fines, the advisory council didn’t come to any conclusions, but it did take about an hour to bat around how to define what a violation actually is and how to mete out fines. The group decided to reconvene in a special meeting in December to continue the conversation. Some sort of consensus is required for Lottery staff to be able to spell out rules.

According to the law, the Lottery may fine operators $25,000 for violations, but the law does not make clear how often a fine can be imposed for the same violation or if violations can be broken down into categories based on how heinous they are.

As part of the discussion, one council member — the meeting is held by phone conference and all parties are not always easily identifiable — asked, in the event an operator distributed unapproved 10,000 fliers that are in violation of the regulations, “Is that one violation or 10,000?” The council seemed to agree that that situation would merit a single fine, assuming the only violation was that the flier was distributed without Lottery approval.

The list of potential violations is long and varied, but some of the potential violations mentioned were if an operator uses unapproved advertisements/marketing materials, or if key information is left off the materials (i.e. stating that the betting age is 21 or failing to including problem gambling help line information). Operators are required to submit advertising and marketing materials to the TEL for approval.

How to handle fines and the 10% hold?

Another key question is how often an operator could be fined for ignoring the 10% hold rule. There has been some concern among council members and the TEL that operators may see the $25,000 fine as a “slap on the wrist” in exchange for being able to offer more competitive pricing. Because operators are required to hold 10% of handle — the national average is more like 7% — pricing/odds in the state may be worse than in other states, at least on certain markets, possibly driving potential customers either across state lines or onto the black market. At the moment, none of Tennessee’s border states offer statewide mobile sports wagering, but Virginia regulators are planning to go live with operators early next year.

“This comes up most poignantly in the case of the hold, because we’ve had the conversation amongst us in public session about whether or not a $25,000 fine is the cost of doing business,” said attorney Tom Lee, an appointed member of the state’s sports wagering advisory council. “I think that is determined in part by how the violation is defined. If you can only determine the violation once a year, it would have a different impact than if it could be” fined repeatedly.

That’s less than 10% GGR pic.twitter.com/mze9jTvGjb

— Captain Jack Andrews (@capjack2000) November 16, 2020

Due to time constraints of some council members, the hour-plus meeting was suspended before any decision on the fines and violations could be reached.

ShareTweetShare
Jill R. Dorson

Jill R. Dorson

Jill has covered everything from steeplechase to the NFL and then some during a more than 30-year career in sports journalism. The highlight of her career was covering Oakland Raiders during the Charles Woodson/Jon Gruden era, including the infamous “Snow Bowl” and the Raiders’ 2003 trip to Super Bowl XXXVII. Her specialty these days is covering sports betting legislation across the country. You can reach Jill at jill@bettercollective.com

Related Posts

Credit to: Caitie McMekin USA Today Sports
Promotions

BetMGM Bonus Code Unlocks $50 Bonus Bet and $1K First Bet Offer for Texas vs. Tennessee

January 28, 2023
Tennessee December 2022 revenue report
Industry

Tennessee Rings Out 2022 With Monthly Sports Wagering Records

January 13, 2023
Load More

Top Stories

patrick mahomes

Mahomes’ Ankle Speculation Twists Line Movement In Chiefs-Bengals Rematch

January 27, 2023
fanatics-grand-opening

Fanatics Sportsbook At FedEx Field Offers Unique Retail Option In Maryland

January 23, 2023
Shutterstock

Missouri Legislators Lament Exodus Of Bettors To Neighboring States

January 27, 2023
rob gronkowski adam vinatieri

Rob Gronkowski Goes Training Montage Route In Latest FanDuel Spot

January 17, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – Where To Play, Bonus Offers And Promo Codes

by Brian Pempus
January 31, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
January 31, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
January 17, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
October 20, 2022

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
October 6, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

gambling therapy
ncpg
igaming ontario
If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) (IL). Gambling problem? Call 1-800-GAMBLER (MI/NJ/OH/PA/WV), 1-800-9-WITH-IT (IN), 1-800-522-4700 (CO), 1-800-BETS OFF (IA), 1-888-532-3500 (VA) or call/text TN REDLINE 1-800-889-9789 (TN).
19+. Please play responsibly. Terms and conditions apply. 
Individuals must be 19 years of age or older to participate in igaming in Ontario. Gambling can be addictive, please play responsibly. If you, or someone you know, has a gambling problem in Ontario and wants help, please visit ConnexOntario or call their helpline at 1-866-531-2600. Operators on this website operate pursuant to an Operating Agreement with iGaming Ontario.

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Guide To ‘Risk-Free’ Bets
  • News

loading

Please wait while you are redirected to the right page...

Please share your location to continue.

Check our help guide for more info.

share your location