Four betting entities are launching their mobile sports betting apps in Tennessee today, just 18 months after the state legalized betting on sports events The four sportsbook providers include Action 24/7, BetMGM, Draftkings and FanDuel, while other bookmakers like BetAmerica, Churchill Downs, William Hill and Wynn Resort still await the Tennessee Education Lottery Corp.’s (TELC) approval of their respective gambling license.
The state however, allows only mobile sports betting, and has designated the TLEC as the regulator tasked to monitor compliance with Tennessee’s betting laws and policies; Including the “10 percent hold” payout rule applicable on winnings.
All approved sports betting operators who will be offering their betting products in Tennessee will have to pay TELC a fixed annual fee of $750,000, in addition to the 20% “privilege tax” on adjusted gross revenue that will go to the state government.
Moreover, all wagering will be carried out, only by way of mobile applications provided by the TELC-approved bookmakers.
What is the 10-Percent Hold Rule?
The 10-Percent Hold rule refers to the portion that a sportsbook operator can withhold as fees or commission from the winnings of a Tennessee punter. This denotes that if a bettor wagers $100 on a betting product, only $90.00 of the $100 winnings will be paid out if the punter wins. The $10 held out, represents the bookmaker’s commission, which subsequently forms part of the betting entity’s adjusted gross revenues. The sportsbook’s total revenues include the wagers placed by gamblers who did not win.
The guidelines in the state’s sports betting legislation empower the TELC to impose a fine of $25,000 on a sports betting firm that will deduct more than 10% from a bettor’s winnings. In addition, the Lottery Corp’s board maintains the authority to impose additional sanctions when deemed necessary.
Will the 10% Hold Out be Appealing to Tennessee Punters?
Sport betting experts and enthusiasts alike are of the opinion that the 10% retention rule is not competitive. It might not motivate Tennessee punters to place their wagers on local sportsbooks. After all, they can always place wagers on out-of-state licensed sportsbooks that retain less than 10% as commission. The state of Nevada, for one, allows their licensed bookmakers to retain less, at an average of 5.4% of the winnings of sports bettors.
Since licensed Nevada bookmakers are as equally trustworthy as Tennessee-licensed bookmakers, local punters can always opt to place their bets on sportsbooks outside of the state, if only to rake in larger amounts of winnings.
In Indonesia, where online gambling is not regulated because the predominantly Muslim country has to abide by Islamic laws, sports bettors choose only licensed sports betting platforms or Judi Online Terpercaya situs. However, unlicensed sports betting operators exist in their midst, which in order to be competitive, offer lower hold percentage or take out on the winnings of Indonesian gamblers