• 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
  • 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
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Tennessee Wagering Regulator Concerned About Unrealized Tax Revenue

Major sports betting operators fell short of the state's mandatory 10% hold rule

Bennett Conlin by Bennett Conlin
February 15, 2023
in Regulation
tennessee-mens-basketball-players-celebrating

Eakin Howard/Getty Images

Share on FacebookShare on Twitter

Tennessee received $68 million in tax revenue from mobile sports betting operators in 2022, but the state’s regulator felt like it left money on the table. 

In Tennessee, operators must have a 10% hold on gross revenue, according to state regulations. When they don’t, they’re given the option to either pay a $25,000 fine or a privilege tax payment equal to the difference of what they would have paid had they adhered to the hold and what they actually paid. 

In 2022, Tennessee Action 24/7, Barstool Sportsbook, BetMGM, Betly, Caesars Sportsbook, DraftKings, SuperBook Sports, Wagr, and WynnBET missed the 10% hold mark, but opted for fines rather than paying the difference. The Sports Wagering Advisory Council (SWAC) calculated that it missed out on roughly $11 million in tax revenue because of the failure to hit the 10% hold across operators. 

“That’s $11 million that 15% of it didn’t go to the municipalities spread out, 5% didn’t go into responsible gaming, and the other 80% didn’t go to our students for scholarships and other things,” said Billy Orgel, chairman of the SWAC. 

The operators’ decision to accept the small fine was logical for their own bottom lines, but left SWAC members wondering what more could be done to maximize Tennessee’s potential tax revenue. 

“Our responsibility is to the people of Tennessee,” Orgel said. 

Expect the SWAC to seriously consider new penalties in the near future, as the council plans to meet again on March 1. 

Possible changes coming

The Tennessee Sports Wagering Advisory Council says that Tennesseans wagered $3.8 BILLION dollars on sports in 2022. That's up 41 percent from the year before. The State of Tennessee makes $68 million dollars from that $3.8 billion spent. pic.twitter.com/zNISJTjYpl

— Justin McFarland (@ThisJustinTv) January 20, 2023

Legal sports betting went live in Tennessee on Nov. 1, 2020. Perhaps most concerning to SWAC members was that a few operators also failed to hit the hold in 2021. 

“It’s gonna come up every year until we correct it,” SWAC council member John P. Valliant Jr. said at the group’s early February meeting. 

The possibility of suspending an operator’s license was even discussed by the SWAC. A license suspension would almost certainly incentivize operators to either meet the hold condition or fork over the true-up payment. 

Members of the SWAC seemed more inclined to hand out additional penalties to repeat offenders of the 10% hold rule rather than first-time rulebreakers. As it currently stands, taking the $25,000 fine is a no-brainer for operators.

“If I have a choice between paying $1 million or paying $25,000, I’m gonna take the 25 every time if nothing is gonna happen to me,” Valliant said.

Should the SWAC ramp up penalties for operators failing to hit the 10% hold, bettors may feel the impact. Operators raised concerns in 2021 that given stiff requirements in Tennessee, they might need to resort to offering worse odds when compared to other states, perhaps moving odds listed at -110 in other states to -115 or -120 in Tennessee to help them meet the hold requirement.

ShareTweetShare
Bennett Conlin

Bennett Conlin

Bennett Conlin is a sports betting reporter. He began his sportswriting career crafting recaps of family wiffle ball games. He’s covered more meaningful games since those early days, most recently writing about the University of Virginia’s athletic programs for The Daily Progress. Bennett can be reached at [email protected].

Related Posts

nfl-football-leaning-on-pylon
Industry

Tennessee’s Official League Data Up For Debate And Could Have National Implications

March 27, 2023
betmgm-logo-at-nashville-predators-home-arena
Legislation

Tennessee Legislature Considers Changing Mandatory 10% Wagering Hold Rule

March 22, 2023
Load More

Top Stories

taylor mathis

Taylor Mathis Got Sacrificed At The Altar Of Responsible Gambling

March 20, 2023
fanduel baseball wall

Premade Same Game Parlays Are Sucker Bets

March 13, 2023
maginfier-over-small-print

Read The Fine Print: A Proposed Federal Rule Could Change Everything For Indian Gaming

March 6, 2023
roman reigns wwe

Colorado Denies Report Stating That It’s Considering WWE Wagering

March 8, 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 – All Online Sportsbooks, Bonus Offers, and News 2023

by Brian Pempus
March 31, 2023

Downtown Detroit at twilight (Shutterstock)

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

by Brett Smiley
March 27, 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
March 22, 2023

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

SportsHandle

  • Analysis
  • Casino
  • Features
  • Horse Racing
  • Industry
  • Legal
  • Legislation
  • Opinion
  • Podcasts
  • Poker
  • Politics
  • Promotions
  • Regulation
  • Sports
  • Uncategorized

Better Collective

This website is owned and operated by Better Collective USA. Trademarks and copyrights referenced on this website are and shall remain the exclusive property of their respective owners and/or licensors. Please be sure to visit the operator’s website(s) to review their terms & conditions. We advise you to read these carefully as they contain important information. Copyright © 2023 USBets.com | Better Collective USA
21 Play Responsibly
Gamble Aware West Virginia
Gambling Problem? Call 1-800-Gambler.
GameSense

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
  • News