Following the Tennessee sports betting regulations until Jan. 6, a recap of the comments was published on Tuesday, coinciding with a Sports Wagering Advisory Council meeting. While the Tennessee Education Lottery Corporation (TELC) summarized the comments in 323 separate points, the two issues that by far yielded the most attention and concern: a rule that would cap payouts from operators to sports bettors at 85 percent, and a rule that would classify a “push” or tie as a loss in a parlay wager.
Those comments — 37 total on the capped payout and 60 on the parlay proposal — were noted as requests and directives in the TELC’s summary as follows:
300. 85% payout percentage would drive those to illegal market and outside of all U.S. Markets (refer to Eilers report)
301. Remove restriction that a push is a loss
The 323 points cover the gamut — from consumer-focused concerns, overarching sentiments, notes about deposit and withdrawal methods, the tax rate (“20% tax rate is absurd”), requests for clarification of various , plus dozens of questions about licensure and corresponding fees, restrictions and applicability.
TN sports betting draft regs yield broad , criticisms 3u5q5p
Summary-Public_Comments-TN_Draft_Rules_and_Regulations (1)The identities of the parties who submitted comments is not indicated anywhere in the document, and it does not appear that the TELC will release the complete dossier of public comments.
Here are some comments of note from the document– a combination of unique entries or subjects receiving 10 or more responses.
3. Follow Nevada rules to get it right
6. What is the business plan of the TEL and its Board? Regulatory system need to have full transparency
40. Exclude fantasy sports from definition of bet or wager (or as separate provision)
53. Clarify how approval of sporting events upon which wagers can be made is obtained, how frequently, and what are the circumstances for not giving approval
81. Requirement to use official league data should be removed because it is detrimental to operators, there is no evidence that provides substantial advantage, and hinders competition
91. Lower license fees, especially for start-ups since high fees create monopoly, discourages competition, and jeopardizes market
61. Delete restriction on occurrences determinable by one person or play (would prohibit wagers on tennis, golf, auto racing, MMA)
62. Remove requirement for hip if Global Lottery Monitoring System or expand to allow other integrity organizations more common in U.S. markets like SWIMA
198. Player association payment of royalty fee
200. 20% tax rate is absurd
234. Many advertising restrictions are vague and burdensome
238. 30 days for advertising review is not realistic (other models can provide guidance)[proposed language provided]
240. Add 1-800-GAMBLER or other approved helpline number or message
275. Remove requirement on minimum and maximum wagers or have operators set
282. What is the process for player complaints?
300. 85% payout percentage would drive those to illegal market and outside of all U.S. Markets (refer to Eilers report)
301. Allow prop bets and futures to be parlayed
302. Allow event outcomes that are directly connected to be parlayed
303. Remove restriction that a push is a loss
305. Allow wagers on non-sports related events
In a preamble to the summary of comments, the TELC writes that “the public comment period provided the TEL with valuable from potential players and operators as well as other stakeholders,” adding “all comments are currently under review.”
It’s not exactly clear what that review entails, or how much influence the nine-member appointed council will have on the final regulations that get implemented.
During Tuesday’s meeting, it was announced that the TELC plans to finalize the rules within the next four weeks.
Tennessee is effectively starting from scratch on legal sports betting as a state where legal gambling has consisted only of a state lottery — and no casinos or tracks or gambling facilities of any kind.
Frequent reference was made throughout the comment summary to the booming sports betting markets in Nevada and New Jersey, the latter of which on Tuesday reported a monthly betting handle in December of $557.8 million, just $5 million shy of the previous monthly record set one month earlier.
Reads one other summary note: “TEL should publish monthly revenue reports like Nevada, NJ, and other states for transparency.”
Click here for a full report about the Jan. 14 Sports Wagering Advisory Council Meeting.
