Tennessee is just weeks away from launching their legal sports betting for 2020. Very soon, residents who are in the Volunteer State will have the ability to place bets while anywhere in the state’s borders on various TN sports betting apps.
To do this, users will need to wager on their smartphone or other devices that can connect to the internet. Tennessee state legislature passed a law legalizing sports wagering in spring 2019, and now the time has arrived for betting day.
How Tennessee Arrived Here
Sports betting is set to be active in Tennessee. The law is going to allow for betting online and on mobile apps, so this is great for customers betting on the go too. However, it appears that there will not be any physical sportsbook locations. The law has been designed to regulate the online sports betting market.
Back in 2019, the Senate had discussed bill S-16 and then amended the House bill H-1. This paved the way to allow Tennessee to enter the market.
When the state legislature approved a sports betting bill in April 2019, Governor Bill Lee had hinted that he would allow it to become law even without his signature so that is exactly what happened. That had a domino effect towards the countdown for legal sports betting in the state.
Tennessee Sports Betting
There is not a concrete date for the launch of sports betting in Tennessee, but the state has been talking about a launch date of November 1, 2020. So as of now, you can expect this to kick in at that time.
There was a lot of activity in late 2019 that had originally posed as a possibility and even the likes of the Super Bowl. Both of those potential dates had come and gone without any new sportsbooks in Tennessee being allowed to open.
It has typically been that any state trying to join the US legal sports betting market has aimed to launch its business prior to the NFL and college football season. This is because those two sports markets attract the most betting handles throughout the United States, so sportsbooks want to make sure they are up and running with no issues before that.
Tennessee will become one of the few Southern states that has legal sports betting when it launches. Mississippi and Arkansas already have active legal sportsbooks, but interestingly enough, neither state allows for online sports betting.
Two Major Drawbacks
Tennessee might have online legal sports betting heading their way, but it is coming with two major drawbacks. One is that users will not have a physical brick and mortar location for these businesses and that there is a 10 percent mandatory hold on bets.
At the moment, there is not a physical operator or vendor to help with regulating sports bets. There are a few names that come into play that could help out since they have all been approved by the Tennessee Education Lottery Corporation to operate online, such as:
The other drawback is the 10 percent fee tacked onto every single bet. This is concerning for users trying to make any profit, as it diminishes gains. So for example, every $100 in profit you are trying to get, you will at least have to fork over $120 or more, especially on favorites.
Tennessee has stated that it reserves the right to revisit these rules after having one year of operating under their belt. The state market could become more attractive as user friendly before the 2021 football season, but one has to wonder if this will even change at all.