In recent developments from Tennessee’s sports betting sector, significant regulatory actions and a notable update on betting activity have been reported. The Tennessee Sports Wagering Council (SWC) has imposed fines on two major players in the industry, ZenSports and Fanatics, for regulatory breaches. Additionally, the Tennessee Sports Wagering Advisory Council (SWAC) has released figures revealing a substantial increase in the state’s sports betting handle for April.
ZenSports Penalized for Insufficient Reserve Account Balance
ZenSports, a prominent sports betting operator, has faced a $60,000 fine from the Tennessee Sports Wagering Council (SWC). The penalty follows three incidents in December 2023 where ZenSports’ reserve account balance fell short of the required amount to cover its obligations. Maintaining an adequate reserve is crucial for ensuring that operators can meet their financial commitments, and repeated failures to do so have led to this substantial fine.
Fanatics Fined for Self-Exclusion Violations
Fanatics, another major operator in the sports betting industry, has been fined $50,000 for failing to adhere to regulations concerning self-exclusion lists. The SWC’s investigation found that Fanatics permitted eight self-excluded individuals to place bets. Each violation has resulted in a fine of $6,250, totaling $50,000. Fanatics attributed this lapse to operational challenges following its acquisition of PointsBet’s US operations, which was completed in April 2024. The company self-reported the infractions, which played a role in the SWC’s decision to impose the fines.
April 2024 Betting Figures
In a positive development for the state’s sports betting market, Tennessee reported a substantial increase in betting handle for April 2024. According to the Tennessee Sports Wagering Advisory Council (SWAC), bettors wagered a total of $384.2 million in April. This represents a remarkable 20.7% increase compared to April 2023, although it is a 19% decline from the $473 million wagered in March 2024.
Tax Revenue Insights
The increase in betting handle has had a beneficial effect on the state’s tax revenue. Tennessee generated $7 million in privilege tax from sports betting in April, marking a 9.4% increase from the previous year. However, the SWAC has not disclosed detailed revenue data beyond this tax figure.
The recent regulatory fines imposed on ZenSports and Fanatics highlight ongoing efforts by Tennessee’s regulators to ensure compliance within the sports betting industry. Despite these penalties, the state’s sports betting market continues to show robust growth, as evidenced by the significant increase in the betting handle for April 2024. The interplay between regulatory oversight and market expansion underscores the dynamic nature of Tennessee’s sports betting landscape.