HUGE week in the gambling world. Both Indiana and Tennessee realized they were smart cookies and put legislation in on sports gambling.
On a side note, can we please take a moment to see the irony on the theme of this article and the title? Thank you, I will take credit for that creativity as you won’t see it often from a nerd like me ;).
Tennessee started it off last Wednesday by having legislation passed without even the signature of Governor Bill Lee (he allowed it). Originally, he was not a fan of the industry, but he saw the economic impact that would be brought to the state. As part of the bill, Online sports betting is projected to bring in $50 million a year to Tennessee, with $40 million going to the lottery fund and education for the under privleged, $7.6 million for local government infrastructure projects,and $2.5 million for mental health services. The logistics for license fees and taxes are still being negotiated, but will be within a reasonable range of $200k and then around a 15-20% tax rate. Quite the deal when you compare it to places like New Hampshire and New Jersey.
In all honesty, I love how they listed out exactly what the tax dollars and fees collected will be going to. I am foreseeing many states following this path of pre-planning and announcing from the beginning where all the money collected will be going. That will allow a much more simple ride for legalization as the more liberal politicians woudln’t be so picky. On top of that, by allowing cheap licensing, they are opening the door for staunch capitalism and new businesses to open up. I only see that as a fantastic endeavor.
Now, Indiana is a fun one. This actually happened today and as it turns out, Indiana is probably the most lucrative place to start a new business for sports gambling now. Parts of the newly passed bill includes: a tax rate of 9.5% of adjusted gross revenue (with a portion allocated to problem gambling) no wagering on esports or amateur athletes under the age of 18, and an initial $100,000 fee for a vendor license (followed by $50,000 annual renewal payments).
This is by far THE BEST deal any state has passed so far in terms of restrictions and taxes put on sports gambling practices. There will be so many people flocking to Indiana now just to start a business and it will be a frenzy. Props to Indiana on reaching this feat!! It’s incredible to see that there actually are people in politics that see the massive value within this indistry. Question is now, will other states change their legislation? Let’s face it, the East Coast came out with fees and taxes made to kill business and cripple any new startups. Will seeing this light change the future? Well considering the law of economics, it probably will but not before places like Indiana and Tennessee steal large benefits from what they are about to see.