- Tennessee has authorized an ‘online only’ sports betting marketplace in the state.
- In addition to high fees and a double digit tax rate many of the state’s sports betting regulations are downright inexplicable.
- The most contentious is a requirement that sportsbooks hold at least 10% annually.
There’s a sucker born every minute and that’s good news for Tennessee sports betting and the companies that operate there. No one else but a sucker would bet into a 10% mandatory hold. No doubt the whole arrangement will be lucrative for the state and since they’re not exactly attracting ‘sharp money’ I’m guessing that companies willing to pay Tennessee’s exorbitant overhead will do so too.
From the player’s perspective, Tennessee may be *the* worst sports betting jurisdiction in the United States. Although there’s no shortage of bad ones Tennessee’s 10% hold requirement puts the Volunteer State in a class by itself. Tennessee has cobbled together some of the most hilariously awful sports betting regulations imaginable. It’s as if someone gave them a dare–“make your state a sports betting grease fire”–and they’ve done exactly that. The fact that there are actually players willing to bet with Tennessee regulated books when the state has figured out a way to give sports betting slot machine like hold percentages says everything you need to know about the state of math education in the United States.
I’ll refer you back to my earlier analysis of the Tennessee sports betting cesspool awhile back so check it out if you’re so inclined. Bottom line: lottery run, minimal competition, high fees, high taxes and a downright absurd 10% ‘hold requirement’ that Tennessee copied from that epicenter of sports betting excellence, France.
DraftKings clearly understands the profit potential of booking to the mathematically and financially illiterate so they’ve set up shop in Tennessee. As a stockholder, I’m glad to see it. Following in the footsteps of MGM Resorts’ partnership deal with the Tennessee Titans the folks at DraftKings have signed on with another of the state’s pro teams–the Nashville Predators. DraftKings is now the ‘Official Daily Fantasy Sports Provider’ and an ‘Official Sports Betting Operator’ for the NHL team.
Here’s what Chris Junghans, EVP & Chief Revenue Officer, Nashville Predators, said about hooking up with DraftKings:
“As soon as the Tennessee Sports Gaming Act was passed in April, we immediately began our search for an experienced sports betting partner. With legal sports betting now live in Tennessee, we are thrilled to announce our formal relationship with industry-leading DraftKings. Through this multi-year agreement, Predators fans across the state will have access to the GOLD STANDARD of sports betting information technology, which provides a competitive, reliable and responsible platform. We look forward to entering this new era of Tennessee sports fandom together and also to seeing everything that this partnership will bring to our state and to our fans.”
Ezra Kucharz, Chief Business Officer, DraftKings, weighed in for the sports betting/DFS powerhouse:
“After recently launching the top-rated DraftKings Sportsbook app in Tennessee, we are thrilled to continue our momentum in the state by announcing our latest team deal with the Nashville Predators. As a result of this collaboration, Predators fans will get the full DraftKings experience both on and off the ice as we look forward to the return of hockey season.”
The specifics of the deal sound like most other relationships of this sort:
Per the agreement, DraftKings’ branding and content will be integrated throughout Bridgestone Arena including static dasher boards and virtual signage visible on TV for all regionally broadcast Predators games. Signage for DraftKings will also be incorporated on the Lexus Lounge LED screen for all regular and postseason Predators home games. Additionally, DraftKings sports betting lines will be prominently showcased during both pre-game and in-game radio spots.
In addition to in-arena branding, DraftKings and the Nashville Predators will partner on digital and social media content, with DraftKings takeovers of the Predators homepage, app integration and social media giveaways. DraftKings will also have a regular presence in “This Week in Smashville,” the Predators’ newsletter.
Congrats to the Preds and DraftKings. Now let’s get to work and ring that register!!