The TN sports betting market started off with the unique and confusing twist of requiring operators to hold 10% of revenue every month.

Proposed changes passing through the Tennessee House would change that requirement, albeit to another head-scratching model not seen in any other US state.

Currently, TN sportsbooks have adjusted gross income taxed at 20%, with the 10% hold requirement. An amendment added to HB 1362 last Wednesday, though, would tax all operators at 1.85% of their handle.

The bill passed a Senate Committee as amended and will be heard Wednesday in the Finance, Ways, and Means Subcommittee. Mary Beth Thomas, executive director of the Sports Wagering Advisory Council (SWAC), did not respond to LSR‘s request for comment.