In July of last year, sports betting became legal in the state of Tennessee. However, they still have a long way to go before sportsbooks can officially open their doors. This is because the Tennessee Sports Wagering Advisory Council is having issues coming up with regulations for sports wagering. Thus, the latest gambling news is that Tennessee Sportsbooks will not Open in time for March Madness.
Sports Betting fans in Tennessee hoping to bet on March Madness will probably have to wait until next year. This is because the TELC’s Sports Wagering Advisory Council which met on February 18, could not agree on specific rules. The plan was to have them go over the initial regulations and public feedback and to approve the final documents.
However, according to PayPerHead Providers, the talks fell through because of two provisions in the sports betting rules. Therefore, the Lieutenant Governor, Rand McNally along with House Speaker Cameron Section told the TELC to stop the approval process.
Difference of Opinion about the Sports Betting Regulations
The main concerns about regulating sports betting involve the classification of parlay bets and the Vig a sportsbook will charge. The is because the commission wants to go against traditional sports betting standards and protocols. According to Gambling Industry news, they want a tie to nullify the parlay bet instead of making it a loss. Thus, it would be in the favor of the player and reduce the overall odds of the parlay bet.
In addition, the next difference in opinion is about how much the sportsbook should charge as their fee. Traditionally, a sportsbook will charge 10% or less for the commission or betting handle depending on the sport. However, regulators want to sportsbooks in Tennessee to have a 15% minimum betting hold.
Of course, a higher betting hold would give the sportsbook and the state higher sports betting revenue. However, many believe that it is too much and bettors would rather go elsewhere to place their bets. In fact, it could result in the state losing as much as $11 million in revenue.
Furthermore, some legislators believe that the regulations may be outside of the Tennessee sports gambling law. This is because the Tennessee Sports Gaming Act does not authorize a Sports Pool Intermediary License, Vendor License, and associated fees.
For the moment, the TELC will try to meet with McNally and Sexton to go over these concerns. Thus, industry insiders believe that Tennessee Sportsbooks will not Open in time for March Madness this year.