The Tennessee legislature has passed a bill that will tax sports wagering handle, making it the first state to do so. The bill, which was passed with strong support from both sides of the aisle, is expected to bring in millions of dollars in revenue for the state.
What is Sports Wagering Handle?
Sports wagering handle is the total amount of money wagered on sporting events at sportsbooks. The handle is typically used as a way to measure the size of the sports betting industry in a particular state. The larger the handle, the more revenue the state can expect to collect from sports betting taxes.
How Will the Tax on Sports Wagering Handle Work?
Under the new law, Tennessee will levy a 15% tax on the handle of all sports wagers placed within the state. This is in addition to the state’s existing 20% tax on sports betting revenue. The new tax is expected to generate millions of dollars in revenue for the state, which will be used to fund education, infrastructure, and other critical state programs.
What Does This Mean for Sports Bettors?
While the new tax may have some impact on sports bettors, the overall effect is expected to be minimal. Most sportsbooks are expected to absorb the cost of the tax without passing it on to customers. However, there is a possibility that the tax could lead to slightly lower payouts for winning bets or slightly higher prices for losing bets.
What Impact Will This Have on the Sports Betting Industry?
The passage of this bill is expected to have a positive impact on the sports betting industry in Tennessee. By taxing the handle, the state is able to generate additional revenue without placing an undue burden on sportsbooks or bettors. This could lead to increased investment in the industry, which could ultimately lead to more jobs and economic growth in the state.
What Other States Are Considering Similar Bills?
Several other states are currently considering similar bills that would tax sports wagering handle. New York and Connecticut have both proposed bills that would tax handle, while Illinois and Louisiana are considering bills that would tax both handle and revenue. Other states, such as New Jersey and Pennsylvania, have already implemented sports betting taxes, but they have chosen to tax revenue instead of handle.
Conclusion
The passage of the bill to tax sports wagering handle in Tennessee is a significant milestone for the sports betting industry in the United States. By taxing handle instead of revenue, Tennessee has created a unique model that could potentially be adopted by other states in the future. While the impact on sports bettors is expected to be minimal, the new tax is expected to generate millions of dollars in revenue for the state, which will be used to fund critical programs and services.
