Could Tennessee Be First State With Peer-to-Peer Wagering?



The Tennessee Education Lottery (TEL) on Tuesday announced it is considering approving four new online sportsbooks — including two that offer peer-to-peer betting. If approved, they would start as traditional online sportsbooks.

The Tennessee Education Lottery (TEL) on Tuesday announced it is considering approving four new online sportsbooks — including two that offer peer-to-peer betting. If approved, they would start as traditional online sportsbooks.

That approval decision, which is expected during a meeting on Wednesday, could be handled by the state’s new regulatory authority, the Sports Wagering Advisory Council. The council would have regulatory authority in Tennessee under legislation recently approved.

During Tuesday’s Sports Wagering Advisory Council Meeting, the two peer-to-peer operators were not named, but ZenSports has applied for a sports betting license in the state. The peer-to-peer operators would be approved as online sportsbooks, until rules regulating peer-to-peer wagering have been established and clarified.

Operating as a traditional online sportsbook, ZenSports “also offers a peer-to-peer sports betting marketplace,” according to its website. The peer “exchange” allows people in legal markets worldwide to create and accept bets that eliminate reliance on bookmakers’ odds and terms.

Currently, there is no peer-to-peer wagering in the U.S, but during Tuesday’s meeting lottery officials determined that peer-to-peer was legal under the Sports Gaming Act passed in 2019.

The current legislation (HB1267, SB0588) would give the advisory council regulatory powers, including adapting rules and taking disciplinary action against a licensee.

April Handle Revealed

Tennessee generated $172 million in total sports betting handle and $2.8 million in privilege tax for the month of April, according to figures released during the lottery meeting on Tuesday.

April’s handle is down 16.4% from March’s $205.9 million, which was helped by March Madness.

Official monthly numbers for April will be released by the lottery at a later date.

Over $1 Billion in Handle Since Launch

Since Tennessee’s market went live on Nov. 1 with four sportsbooks, the state has taken in $1.077 billion in total handle, generating $18.5 million in tax revenue to the state for the first six months of operation.

There are now seven sportsbooks live in the all-online Tennessee sports betting market with WynnBet joining the ranks on April 30.

WynnBet is live along with DraftKings, FanDuel, BetMGM, Nashville-based Action 24/7, TwinSpires and William Hill.

The next Advisory Council meeting is scheduled for Aug. 17, but that is subject to change.

This article is a reprint from Gambling.com. To view the original story and comment, click here


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