Tennessee Sports Betting Bill to Separate Funding Withdrawn

Spread the Word:

A Tennessee sports betting bill seeking to change the funding methods of sportsbooks was withdrawn after it was deemed too broad. The two companion bills HB 824 and SB 1029 are no longer a part of the Tennessee General Assembly’s agenda, and their prospects of approval are doomed for this year at least. Rep. Darren Jernigan backed HB 824, which was returned to the clerk last week, and Sen. Richard Briggs, who sponsored SB 1029, withdrew his measure Wednesday night.

What Changes Did the Legislation Seek?

Action 24/7, the local company, was one of the four sportsbooks initially allowed to launch in the Tennessee market that went live November 1, 2020. In January, the sportsbook got permission to take cash deposits for sports bettors at its Advance Financial locations across the Volunteer State.

Tennessee Action 24/7 and Advance Financial 24/7 are operated by the same owner. Advance Financial 24/7 allows an individual’s sports betting account to be funded by loans from its agency, besides allowing players to pay back loans with the winnings raised through bets made at their sportsbook. HB 824 and SB 1029 sought to bring changes that would not allow these two businesses to work in this arrangement in Tennessee, essentially seeking to prevent:

  • Taking cash from a high-interest loan and using it to fund a Tennessee sports betting account.
  • Allowing loan customers to create a sports betting account in the hopes of betting to pay off loans.

Why Were the Bills Withdrawn?

However, lawmakers felt that the proposals were not specific enough to be allowed further consideration. In addition, Tennessee Action 24/7 also aggressively fought its corner to ensure the legislation does not see the light of the day.

Action’s lawyers told Briggs recently that it’s possible for some of the payment vendors linked with other operators in Tennessee to lend money as well: “Advance Financial denied doing anything different, or claimed actually less, than the other digital gambling sites,” he said. Besides, when asked about how many of its loan customers are also bettors with Action 24/7, Advance Financial did not answer. However, one of those loan customers told Jernigan their wagering winnings were kept to pay off a loan. The customer eventually chose not to testify and Advance Financial denied that ever happening.

Action 24/7 usually tends to promote its ability to take cash deposits, which is apparently a trust-building tone from a reliable operator, but it is not particularly good when the cash is lent at high interest rates. Brianne Doura-Schawohl, VP of US policy and Strategic Development, said, “Gambling with cash that’s being lent at an exorbitantly high-interest rate… isn’t any better or any safer.”

Related News

Tennessee Volunteers stadium
July 5, 2021

FanDuel-BetMGM Competition Dominates Tennessee Sports Betting in May

The neck and neck competition between FanDuel and BetMGM dominated the Tennessee sports betting scene for May, which saw its lowest handle since launch. Only a few dollars decided the […]

read more
Tennessee Action 24/7
May 21, 2021

Action 24/7 Cleared by Tennessee Sports Betting Regulator

The Tennessee Education Lottery has cleared Action 24/7, a month after it became the first US sportsbook ever to be banned by a regulatory authority. On Thursday, the lottery said […]

read more
Churchill Downs racetrack
September 2, 2021

Tennessee Sports Betting Becomes $1.5bn Industry in 9 Months

Despite witnessing the slowest month in July, Tennessee sports betting has become a $1.5 billion market in the first nine months of its operation. The state launched its sports betting […]

read more
orange flat with letter T printed
October 28, 2020

Tennessee Sports Betting May Launch Before Planned Nov 1 Date

Tennessee sports betting is scheduled to launch on its planned date of November 1 but it may even launch two days before that date. The Tennessee Education Lottery held a […]

read more
Tennessee sports betting February handle
May 14, 2021

Tennessee March Sports Betting Handle Up 17% Despite Controversy

Despite embroiling in one of the biggest controversies in US sports betting history in March, Tennessee sports betting posted a remarkable handle of $206 million. According to the latest figures […]

read more
August 5, 2020

Sports Betting in Tennessee May Not Launch Until 2021

It appears that the countdown of the sports bettors in Tennessee may stretch longer than expected, as sports betting in the state might not launch until 2021. It has been […]

read more
Nashville
June 2, 2021

Tennessee Sports Betting Posts 16.3% Decline in April Handle

Tennessee joined most other states with legal sports betting which saw declining handles and revenues due to lack of sporting activity in April. According to the latest figures released Tuesday […]

read more
May 29, 2019

Tennessee Passes America’s First Online-Only Sports Betting Bill

While he declined to join three other Governors (Montana, Indiana, Iowa) who signed legislation earlier this month, Bill Lee of Tennessee did allow the Volunteer State to legalize online sports […]

read more
map of Tennessee
October 29, 2020

Tennessee Approves More Sports Betting Licenses

Tennessee has finally licensed every operator, supplier, and vendor ahead of the official sports betting launch in the state on November 1. Last Thursday, sports betting supplier Amelco and data […]

read more
October 20, 2020

Three Operators Secure First Tennessee Sports Betting Licenses

Tennessee has finally approved licenses for its first three sports betting operators ahead of its November 1 launch date. DraftKings Sportsbook, BetMGM, and FanDuel Sportsbook are the first three operators […]

read more
Tennessee mobile sportsbooks
August 27, 2021

Tennessee Council Shortlists Candidates For Executive Director, Makes New Sports Betting Rules

Tennessee Wagering Advisory Council has shortlisted nine candidates for the job of the Executive Director of the council, which takes over sports betting on Jan. 1. Nearly 50 applicants had […]

read more
Sporttrade
June 29, 2021

Sports Betting Exchange Firm Sporttrade Raises $36M in Funding

Sporttrade, a company poised to become the first sports betting exchange in the US, has announced it has raised $36 million in funding. The Philadelphia-based fintech said in Tuesday’s release […]

read more

Stay Updated & Receive Exclusive Offers

Be the first to know when new states legalize online gambling and gain access to exclusive casino and sports betting promotional offers.