Tennessee Ponders Sports Betting Handle Tax as Revenues Peak

Must read

[ad_1]

Posted on: March 22, 2023, 06:00h. 

Last updated on: March 22, 2023, 11:44h.

Tennessee first stood out among the states legalizing sports betting by allowing only online wagering. Now, the Volunteer State is considering bucking conventional wisdom again.

Nissan Stadium
Nissan Stadium in Nashville, home of the NFL’s Tennessee Titans. Nearby, the Tennessee General Assembly is considering bills that would change how the state taxes sports betting operators. (Image: PublicDomainPictures.net)

Bills have been filed in both chambers of the Tennessee General Assembly that would eliminate the state’s 20% tax on revenue and replace it with a handle tax. That means the state would get a cut of each bet placed, regardless of whether the operator or the bettor wins.

Senate Bill 475, sponsored by state Sen. John Stevens (R-Huntingdon), would set the tax at 2%, while the House bill proposed a 1.85% tax. Both versions would also allow operators to deduct the .25% federal excise tax they pay on their handles but not any promotional credits.

If lawmakers approve either, Tennessee would become the first state to levy a sports betting tax by handle.

House Bill 1362, sponsored by state Rep. Andrew Farmer (R-Sevierville), also amends the annual license renewal fee structure. Rather than all operators paying $750K a year to take bets in Tennessee, only those sportsbooks that report a handle of $500 million or more in a calendar year would pay that rate.

Those accepting more than $100 million in wagers but less than $500 million would pay $500K, and operators who post handles of less than $100 million would pay $250K.

Any new licensee will still have to pay the $750K fee the first time when the state approves their application.

Both bills also eliminate the 10% mandatory hold the state enacted when creating its sports betting regulations nearly three years ago.

‘Business Friendly’ Key in Tennessee

Farmer reassured colleagues in a House committee meeting earlier this month that the proposed changes won’t be too severe. At the same time, he said the state’s not trying to “poach” the sportsbooks.

It’s going to make plenty of money,” he said. “We just want to try to be as business friendly as possible because the more money these folks make, the more tax revenues are going to be there.”

Both bills continue to work their way through their respective chambers. Farmer’s bill gets a hearing Wednesday in the House Finance, Ways, and Means Subcommittee. Stevens’ legislation goes before the Senate Finance, Ways, and Means Committee next Wednesday.

Revenues Reaching Record Highs

A review of reports published by the Tennessee Sports Wagering Advisory Committee (SWAC) shows that if either chamber’s handle tax was in place for 2022, the state would have made a little more money for the year. That’s also based on how Stevens described how the tax would work, with sportsbooks taking the .25% excise tax off the total handle and then taxing the remainder at 2%.

Tennessee sports bettors wagered $3.85 billion last year, and sportsbooks paid $9.6 million to the federal government.

For the calendar year, SWAC reported Tennessee received almost $68.1 million in tax revenue. The Senate’s tax plan would have generated about $76.8 million, an increase of about $8.8 million. The House’s lower tax would also have resulted in a modest gain, as the state would have received $71.1 million.

The House bill also reduces the state’s revenue from license fees since few of the 13 licensed operators would have had handles exceeding $500 million last year. Unlike several states, SWAC doesn’t break down handle and revenue by operator. Still, it’s a safe bet to assume FanDuel and DraftKings command the highest market shares – just as they do in nearly every other state – and several of the remaining licensees would likely pay one of the lesser two amounts.

One important thing to note is that the tax change comes as sportsbooks post their highest revenue totals ever in the state. The six highest revenue totals have come in the last six months, with the record being $47 million in December.

Based on Casino.org’s calculations, when the state posted a record handle of $440.4 million in December, either chamber’s handle tax would have generated less revenue for the state. Based on the last six months of reports – from September 2022 to February – the House’s handle tax would have produced less revenue in four of the six months, and the Senate’s plan would have in three.

Tax graph
The solid line shows how much revenue Tennessee has generated from monthly sports betting taxes since January 2022. The dotted lines show how much the state would have received if the House’s or Senate’s handle taxes were in place.

A Handle on Tennessee’s Future

While sportsbooks and state leaders hope they can continue increasing interest and driving up the monthly handle totals, those figures could take a hit in the not-so-distant future.

Only two of Tennessee’s neighbors, Arkansas and Virginia, currently offer mobile sports betting. Two others, Mississippi and North Carolina, allow it at brick-and-mortar casinos. Mississippi, North Carolina, Georgia, Kentucky, and Missouri have discussed legalizing online wagering in their states. Some of those states still have a chance to pass bills this year.

As each neighboring state opens its doors to mobile wagering, it stands to reason it will impact traffic in Tennessee. At a Kentucky Senate Licensing and Occupations Committee hearing last week, lawmakers from Southern Kentucky noted they have friends from their districts that drive across the state line every weekend to place bets.

The discussion of a handle tax comes at a curious time, especially since revenues are peaking and handles are uncertain.

For now, though, it’s a bet Tennessee lawmakers appear willing to make.

[ad_2]

Source link

More articles

Latest article

Panduan Lengkap Trik Bermain Totomacau Koi800 Anti Zonk 2025 Bocoran Prediksi Terjitu Koi800 Totomacau Hari Ini Terupdate Rumus Terbaru Totomacau Koi800 Akurat Dan Anti Zonk Rahasia Menang Totomacau Koi800 Dengan Rumus Paling Barbar Cara Main Totomacau Koi800 Agar Menang Dan Anti Zonk Update Prediksi Dan Rumus Totomacau Koi800 Anti Gagal Trik Rahasia Bermain Totomacau Koi800 Tanpa Rugi Bocoran Jitu Prediksi Totomacau Koi800 Anti Zonk Rahasia Pasti Menang Main Totomacau Koi800 Rumus Dan Prediksi Terjitu Totomacau Koi800 Trik Jitu Bermain Baccarat Koi800 Agar Menang Besar Rahasia Trik Baccarat Koi800 Anti Zonk Paling Ampuh Cara Main Baccarat Koi800 Dengan Trik Terbaru Update Terbaru Trik Menang Baccarat Koi800 Strategi Anti Zonk Baccarat Koi800 Hari Ini Bocoran Trik Roulette Koi800 2025 Paling Update Trik Bermain Dan Menang Roulette Koi800 Teknik Bermain Roulette Koi800 Agar Tidak Zonk Strategi Jitu Bermain Roulette Koi800 2025 Rahasia Besar Menang Roulette Koi800 Dengan Mudah Rahasia Menang Besar Di Mahjong Ways Koi800 Tanpa Modal Besar Panduan Lengkap Mahjong Ways Koi800 Raih Jackpot Harian Bocoran Slot Mahjong Ways Koi800 Anti Rungkat Terbaru Pola Auto Maxwin Mahjong Ways Koi800 Hari Ini Update Rtp Live Mahjong Ways Koi800 Bocoran Resmi Tips Dan Trik Gacor Mahjong Ways Koi800 Dijamin Jp Bocoran Pola Slot Mahjong Ways Koi800 Terpercaya Rtp Live Mahjong Ways Koi800 Terupdate Dan Terakurat Rumus Slot Mahjong Ways Koi800 Menang Tanpa Henti Update Bocoran Slot Gacor Mahjong Ways Hari Ini Rahasia Jitu Menang Gate Of Olympus Koi800 Terbaru Strategi Modal Receh Jadi Sultan Di Gate Of Olympus Rtp Live Gate Of Olympus Koi800 Anti Zonk Auto Gacor Tips Dan Trik Jitu Menang Slot Gate Of Olympus Koi800 Bocoran Pola Gate Of Olympus Slot Gacor Modal Receh Strategi Kemenangan Gate Of Olympus Koi800 Tanpa Batas Rtp Live Slot Gate Of Olympus Dan Tips Gacor Terbaik Update Bocoran Slot Gate Of Olympus Koi800 Paling Gacor Tips Main Gate Of Olympus Agar Modal Receh Berlipat Pola Slot Olympus Paling Ampuh Koi800 Hari Ini Trik Gacor Gate Of Olympus Kastatoto Paling Ampuh Hari Ini Pola Main Gate Of Olympus Dijamin Auto Maxwin Kastatoto Jam Gacor Gate Of Olympus Terbaru 2025 Dengan Rtp Tinggi Settingan Pola Slot Olympus Kastatoto Paling Gacor Minggu Ini Cara Menghitung Scatter Gate Of Olympus Dengan Tepat Rumus Rtp Live Slot Olympus Terupdate Dari Kastatoto Tips Spin Gate Of Olympus Biar Cepat Maxwin Anti Rungkat Trik Rahasia Menang Besar Di Gate Of Olympus Slot Online Bocoran Slot Gate Of Olympus Jam Hoki Terbaik Kastatoto Bongkar Settingan Rahasia Slot Gate Of Olympus Trik Gacor Mahjong Ways 3 Kastatoto Versi Pro Player Pola Main Mahjong Ways 3 Slot Terbaik Tahun Ini Jam Gacor Mahjong Ways 3 Hari Ini Dari Data Rtp Live Mahjong Ways 3 Settingan Pola Maxwin Terpercaya Tips Spin Mahjong Ways 3 Slot Agar Profit Konsisten Rahasia Menang Mahjong Ways 3 Trik Dari Top Player Cara Menghitung Jumlah Scatter Mahjong Ways Dengan Akurat Kastatoto Pola Bocoran Slot Mahjong Ways Gacor Update Terbaru Pola Slot Mahjong Ways 3 Paling Dicari Mahjong Ways 3 Bagaimana Menang Dengan Trik Rtp Info Slot Starlight Princess Tergacor Bulan Ini Tutorial Main Starlight Princess Slot Biar Cepat Profit Tips Maxwin Starlight Princess Slot Dari Data Rtp Starlight Princess Jam Terbaik Untuk Spin Besar Bocoran Slot Starlight Princess Malam Ini Paling Gacor Strategi Pola Main Starlight Untuk Maxwin Paling Ampuh Starlight Princess Cara Membaca Peluang Scatter Kastatoto Trik Starlight Princess Paling Dicari 2025 Rumus Rtp Live Slot Starlight Princess Dijamin Profit Rahasia Menang Starlight Princess Slot Dengan Sistem Pola Pola Main Gates Of Gatot Kaca 1000 Anti Rungkat Di Kastatoto Settingan Pola Gacor Kastatoto Slot Gates Gatotkaca Rumus Rtp Live Gates Of Gatot Kaca Update Kastatoto Tips Spin Maxwin Gates Of Gatot Kaca 1000 Pasti Jp Jam Hoki Slot Gates Of Gatot Kaca Kastatoto Edition Trik Gacor Slot Gatotkaca Dari Kastatoto Terpercaya Pola Gacor Gatotkaca Slot Kastatoto Update Terbaru Kastatoto Tips Jitu Spin Gates Of Gatotkaca Trik Dan Pola Gates Of Gatot Kaca 1000 Kastatoto Trik Maxwin Slot Gates Gatotkaca 1000 Terbukti Di Kastatoto Mainkan Mahjong Ways Dengan Strategi Terbaik Dan Cuan Tiap Hari Mawar500 Tips Trik Spin Gates Of Olympus Untuk Jackpot Besar Modal Minim Strategi Hari Ini Dijamin Cuan Cepat Main Mahjong Wins 3 Mawar500 Rumus Ampuh Bocoran Mahjong Ways Yang Lagi Viral 2025 Pola Terbaik Gates Of Olympus Untuk Auto Maxwin Setiap Spin Cara Main Mahjong Wins 3 Dengan Baik Dan Bonus Lebih Sering Keluar Mudah Menang Mahjong Ways Hanya Dengan Strategi Sederhana Petualangan Cuan Hari Ini Main Gates Of Olympus Dengan Modal Irit Cara Mudah Cairkan Saldo Dana Lewat Mahjong Wins 3 Mawar500 Tips Trik Main Mahjong Ways Untuk Spin Lebih Hemat Dan Cuan Banyak Rumus Ampuh Togel Online Buat Cuan Cepat Dan Saldo Dana Tebal Strategi Main Togel Online Untuk Bonus Mepet Dengan Pola Gacor Cara Main Togel Online Agar Lebih Mudah Menang Setiap Sesi Tips Dan Trik Menang Togel Online Pakai Strategi Terbaru Di Mawar500 Pengalaman Cuan Banyak Main Di Kasino Online Modal Kecil Rumus Ampuh Slot Kasino Biar Bonus Besar Lebih Cepat Keluar Tips Dan Trik Cuan Main Kasino Dengan Spin Hemat Dan Profit Strategi Hari Ini Auto Cair Saldo Dana Lewat Kasino Slot Pengalaman Petualangan Cuan Hari Ini Main Mahjong Wins 3 Dan Togel Online Cara Main Mahjong Ways Biar Ga Pernah Rugi Modal Dikit Cuan Banyak Strategi Terbaik Main Mahjong Ways Hari Ini Buat Kamu Yang Serius Mau Cuan Cara Main Dengan Baik Di Gates Of Olympus Biar Lebih Mudah Menang Tips Dan Trik Maxwin Cepat Di Mahjong Wins 3 Dengan Modal Tipis Rumus Ampuh Main Mahjong Ways Agar Bonus Selalu Muncul Pola Terbaik Untuk Gates Of Olympus Biar Cuan Tiap Sesi Cara Cepat Menang Di Mahjong Wins 3 Dengan Strategi Hari Ini Pengalaman Petualangan Cuan Hari Ini Main Mahjong Ways Tanpa Ribet Tips Auto Maxwin Gates Of Olympus Dengan Spin Yang Hemat Strategi Hari Ini Biar Tiap Spin Di Mahjong Wins 3 Bisa Bawa Saldo Cara Main Dengan Baik Di Mahjong Ways Untuk Pemula Dan Pemain Lama Rumus Ampuh Gates Of Olympus Untuk Penghasil Saldo Dana Terbaik Tips Trik Cuan Main Mahjong Wins 3 Dengan Pola Gacor 2025 Strategi Main Mahjong Ways Buat Kamu Yang Suka Spin Cepat Dan Profit Cara Mudah Maxwin Di Gates Of Olympus Tanpa Teori Ribet Petualangan Cuan Hari Ini Dari Mahjong Wins 3 Sampai Saldo Dana Cair Tips Main Mahjong Ways Dengan Pola Terbaik Supaya Ga Zonk Pola Jitu Dapat Jackpot Di Gates Of Olympus Hari Ini Rumus Menang Cepat Di Mahjong Wins 3 Biar Gak Perlu Spin Panjang Strategi Cuan Tiap Hari Main Mahjong Ways Modal Hemat Tips Dan Trik Main Slot Mahjong Wins 3 Yang Lagi Trending