- Tennessee recently held a hearing on Tuesday to discuss regulation of its sports betting market transferred to the Sports Wagering Advisory Committee (SWAC).
- During the hearing, sports betting discussed the desire to change the mandatory withholding rule set by industry law.
- There is a 10% withholding rate on an annual basis for sports betting operators in Tennessee.
NASHVILLE, Tennessee – TennesseeThe regulated sports betting market will be managed by the Sports Betting Advisory Committee (SWAC) and a recent hearing on Tuesday discussed the details of this transfer.
One of the main talking points that captured attention was the discussion surrounding the mandatory retention rule currently in place. Tennessee has a ten% withholding rate on all sports bets made annually.
The audience discussed making it a quarterly rather than annual withholding, but regulated sports betting discussed remove this rule completely judging him anti-consumer.
Tennessee mandatory withholding rate
Several popular sports betting representatives have spoken out against the mandatory detention rule, saying it does not benefit Tennessee as intended. Members of The parent company of BetMGM, Caesars, DraftKings and Barstool Sportsbooks Penn National were present.
“Penn’s biggest concern with the currently mandatory 10% annual withholding and proposed quarterly review is that this mandate forces operators to make unwanted business decisions that lead to injustice to consumers,” noted Josh pearl, Penn Interactive Director of Sports Betting Operations. “The best chance a trader has of meeting the 10% hold mandate is to increase vigor, also known as vig, or decrease payout on parlays and teasers and other offered bets.”
Sportsbook as a whole argues that the withholding rate will indirectly result in sports betting being forced to offer odds that are not beneficial to consumers in order to make up for lost revenue due to the 10% withholding.
Besides, if Tennessee does not have a mandatory retention rule, sports betting may offer more consumer friendly odds resulting in a larger betting crowd and more tax revenue in the Tennessee sports betting market.
“Over time and in the absence of the rule governing capped payments, we would expect the Tennessee market to grow while simultaneously Tennessee’s ownership percentage increasingly resembles Nevada’s,” said Dean Hestermann, director of issues management and strategic communications at Caesars Sports. “This would be the result of smart consumers making smart bets on product engagement in a strong and competitive market without a formal government policy that encourages us, the operators, to give consumers worse bets with worse odds.”
What will happen to the switch to SWAC?
When the SWAC completely takes over the regulations in 2022, the mandatory withholding rule could potentially be deleted or fixed for quarterly review. The rule is still under discussion, so it’s unclear in which direction things will go.
The objective of SWAC is to have a more dedicated sports betting council unlike the current system in which sports betting is regulated by the Tennessee Lottery.
With its own regulated sports betting division, the Tennessee market should operate more smoothly once the transition is complete Next year.
Keywords: Bar stool | BetMGM | Sports betting | DraftKings Sportsbook | Josh Perle | Nashville | Penn National | Sports Betting Advisory Committee | Sports betting | SWAC | Tennessee | Tennessee Lottery
Coming from a background in narrative writing, Giovanni strives to write stories that will keep the reader engaged. While he takes pride in being precise, how the story is told is also very important to him. When not keeping readers up to date with sports betting laws and legislation, you may find him writing and recording music, playing video games, or participating in debates. passionate about sport with his friends.