Tennessee sports betting operators will soon be taxed on the money bettors wager as opposed to the revenue they generate because of a bill signed into law Wednesday by Gov. Bill Lee.
Beginning in July, TN sports betting‘s 20% tax on gross gaming revenue – the pool of income taxed traditionally taxed by legal betting states – is replaced by a 1.85% tax on handle. It is one of several sports betting changes overwhelmingly adopted by the legislature this year under SB 475.
Tennessee will become the only state in the nation to base taxation on handle. It also was the only state to attempt a minimum hold requirement, and that failure led to this change.
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