After legalizing sports betting last year, Tennessee has now approved four different companies to start online betting in the state within the next seven days. The betting process will be along the lines of a sportsbook format and expected to draw a huge number of participants not only within the state but from neighboring states too.
To create rules and regulations for online betting, the Tennessee Lottery Board has been put into action. According to the board’s communication director, Dave Smith, the online betting process is expected to go live from November 1. The four names which have got the approval include Tennessee Action, DraftKings, Fanduel, and BetMGM. According to industry analysts and experts, this is a significant development that is sure to enhance the gaming industry’s adoption potential – both on the short-term horizon and long-term perspective.
Despite sentiments being positive and upbeat, there is some controversy regarding the 10% rate of the payout cap that has been decided by the authorities. Many people believe that this will make the state less attractive and competitive compared to other states offering the same kind of facilities. The payment cap is the amount of winning money that will be retained by betting companies.
It will be interesting to witness how gamblers will react to the opening of this new online facility for betting in Tennessee. There is a factor of payout cap rate that could deter the gamers, but the step was deemed necessary by the board to enhance the competitiveness of the gambling organizations operating in Tennessee. In sum, it’s an interesting development to watch out for when the actual rollout happens next week in November.