- Tennessee’s sports betting regulations are drawing negative comments.
- Experts feel that it is detrimental to their sports betting market and could cost them millions in losses.
- Study shows France, another market with similar regulations, suffers because of it.
NASHVILLE, Tenn. – As the spirit of sports betting continues to spread across the country, many states have begun implementing their own sports betting regulations. While a lot of states have seen valid success and praise for their own regulations, Tennessee has had major push back.
Following the release of their draft sports betting rules, TN made it available for comments to be posted until the deadline of Jan 6. The regulations received over 90 negative comments.
The two main concerns that have garnered the most negative feedback have been the mandatory limit on payouts, which cap payouts at 85%, as well as the rule that would force sportsbooks to score parlay bets with ties as losses.
There were also a slew of comments who were opposed to rules such as a 30-day review period for advertising, which has been criticized as being unrealistic, as well as a harsh rule against betting on personal performances, that would potentially affect TN sports bettors from betting on individual sports such as golf and tennis.
Many feel like these regulations would be giving potential sports bettor’s worse odds than in other states, as well as potentially costing Tennessee millions in the long term.
Payout Cap Could Cost Millions
Eilers and Krejcik is a global gaming consulting firm who last week released a study that shows the potential negative effects if TN goes forward with these regulations.
In the study, Eilers and Krejcik polled 12 unnamed sports betting operators and eight of them raised concerns about the 15% hold requirements, stating that it is causing them to reconsider operating within the Volunteer State.
The study shows that if TN goes forward with the 85% cap on payouts, they stand to lose upwards of $11 million annually due to a decrease in wagering from potential sports bettors and having fewer operators who would be paying the $750,000 annual licensing fee.
This $11 million is a 19.8% decrease from what state officials expect in revenue.
Potential Sports Bettors Taking Their Business Elsewhere
Due to the parlay requirements of making ties count as losses, and the 85% cap on payouts, many potential sports bettors would simply opt-out of placing their sports bets legally in TN.
Tennessee has only legalized online sports betting, meaning there are no brick-and-mortar sports betting operations within the state. Initially viewed as innovative when first announced last year, now following the release of the regulations, has managed to raise great concerns.
Many potential sports bettors may simply choose to travel to neighboring states in order to find better odds, or decide to use other betting means such as offshore betting sites.
The only other market that has a 15% withholding mandate is France. Per the Eilers and Krejcik study, it can be seen how detrimental this regulation could potentially be for the sports betting market in TN.
France has an approximate population of 67 million. However, they only have a total of 13 licensed sportsbooks. In comparison, Denmark who does not have a 15% withholding mandate, has a population of about 5.6 million yet has 18 licensed sportsbooks.
Based on this evidence, it is clear to see the potential negative effects these regulations could have for TN. But only time will tell the results of this gamble.
Coming from a background in narrative-based writing, Giovanni strives to write stories that will keep the reader engaged. Although he does pride himself in being accurate, how the story is told is also very important to him. When he’s not keeping readers up to date on sports betting laws and legislation, you can find him writing and recording music, playing videogames, or engaged in heated sports debates with his friends.