Legalization of sports betting in Tennessee and Illinois.
Sports betting has been given the green light in two US states, Tennessee and Illinois. Since the repeal of PASPA by the United States Supreme Court (USSC) in May 2018, the regulation of this industry has been under the control of the individual states. Here's a closer look at the new legislation in these two states.
Online Betting Approved in Tennessee
The state of Tennessee, with a population of 6.6 million, has recently passed the "Tennessee Sports Gaming Act," allowing legal online sports betting. The vote to approve the bill was close, with a 51:40 majority in the House of Representatives. The bill was introduced by Republican Senator Steve Dickerson and had undergone several modifications before being forwarded to the Senate for approval. With a 20:12 vote, the amended bill was finally approved.
Despite being known for its whisky production, the capital city of Nashville took the step to legalize online sports betting. Governor Bill Lee, perceived as an opponent to gambling, did not use his right to veto the bill. In a tweet, the governor expressed his concerns but respected the decision. He explained:
"I don't believe expanding gambling through online sports betting is in the best interest of our state, but I respect the General Assembly's decision. However, it's not about legalizing casinos, which is the most harmful form of gambling. Compromise is key to governance, but I remain philosophically opposed to gambling."
Tax Revenues and Licensing Procedures
Online sports betting has been legally approved in Tennessee, while land-based betting remains prohibited. The main objective of this legislative move is to generate tax revenue, with the state government expecting annual earnings of approximately USD 50 million (~EUR 45 million). The revenue will be used to improve player protection and prevent problem gambling. The law also stipulates that online bookmakers can offer their range of wagers from next July.
A 20% tax rate will be levied on gross revenues, but this is not the only expense that foreign operators need to consider. A new licensing procedure will be introduced in Tennessee. Companies have to pay a USD 50,000 (~EUR 45,000) non-refundable application fee and an annual license fee of USD 750,000 (~EUR 670,000). Licensed companies are responsible for signing up to a new sports betting committee of the state lottery, which will also decide on potential violations of the license conditions. The amendment provides for fines ranging from USD 1,000 (~EUR 890) to USD 25,000 (~EUR 22,000). It's unclear whether this new licensing system will be attractive for European bookmakers who are eyeing the lucrative US market. No news about potential applicants has emerged yet.
Legalization in Illinois
Illinois, with a population of 12 million, has also taken steps to legalize sports betting. A "broad-based gambling expansion bill" known as 690 has been passed by the House of Representatives in Springfield. The decision was unequivocal, with a 46:10 vote. The bill was pushed forward by Senate President Robert Rita.
The bill is currently before Acting Governor J. B. Pritzker for confirmation. Given the governor's repeated support for gambling expansion in Illinois, it is likely he will sign the bill. The amendment aims to legalize both land-based and online sports betting. To protect its own gambling providers, the agreement includes an 18-month deferral for foreign operators. Additionally, six new state-run casinos, including one in Chicago, will be opened by 2020.
Six-stage Licensing Process in Illinois
Licenses for online sports betting in Illinois will be issued by the Illinois Gaming Board. Six different types of licenses are to be issued, ranked according to the services provided. The most extensive license covers both land- and online-based betting. The term is four years with the option of a four-year extension, while a tax of 5% of total revenue and a monthly gambling tax of 15% will be charged. To obtain a master license, a one-time license fee of USD 1 million (~893,000 EUR) is due, payable again in case of renewal. The collected funds will be deposited in a state-owned sports betting fund.
The proposed law in Illinois has some provisions to safeguard players, which will be funded by the increasing gambling revenues. One of these measures involves implementing a self-exclusion program on gaming platforms. Additionally, because the amendment does not specify an "integrity fee" for sports leagues, operators are expected to use only official data from professional leagues and universities.
As a result, we might see more collaboration between Illinois-based operators and reputable sports data service providers like Sportradar (Switzerland) in the future. The situation is still evolving.
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Source: www.onlinecasinosdeutschland.com
