The NBA is entering the playoffs, and the MLB is well into the season as well. The sports industry is busy catching up on the losses from the first half of the year, and so is the sports betting industry. A lot of people are focused to find the right sportsbook pay per head as they want to get into the sports betting industry. And with the NFL starting in the next month, there is a rush to set up sportsbooks. Even the Tennessee sports betting market is starting to get ready for a launch this fall. Hopefully, earlier so they can run before football season begins.
Tennessee Sports Betting
Sports betting in Tennessee is quite different from other US states. In fact, it is the only state in the country that will have an all-mobile sports betting market. Based on the law that is in effect since July 2019, retail sportsbooks are not legal. In fact, only sportsbook software will deliver odds for residents to bet on online.
According to the Tennessee Lottery, the local sports betting market will open not later than November 1, 2020. Regulations for sports betting in the state is already in place since April. The licensing fees and high hold caps are quite steep. The licensing fee alone is at $750,000. So far, there are 4 operators who now have licenses in the state. Meanwhile, other operators are still looking into applying to operate in Tennessee.
Limits and Restrictions
As for the hold caps, it is a bit high at 10%, whereas the national average sits at around 7.5%. This is quite concerning, as it could affect betting lines. Their tax rate is also one of the highest in the country, at 20%. Official data from leagues are also required, which is an added cost to operators. As for restrictions, in-play betting on college sports is not legal. Since the market is yet to open, the next few months will be a good indicator if the unique policies and steep rates set by the state will be beneficial to the local sports betting market.