Tennessee Hoping to Change Withdrawal Stalling Process
A current practice in the New Jersey sports betting market has the Tennessee Education Lottery looking to make changes to its own market.
Customers in New Jersey have complained about sportsbooks stalling the withdrawal process, and the Tennessee Education Lottery is hoping to get ahead of the issue.
New Jersey is the largest sports betting market in the United States, but some sportsbooks are repeatedly delaying the withdrawal process and instead are offering bonuses to customers to keep more money in their account. Sportsbooks hope that customers will instead make more wagers with their money instead of cashing out.
This has been a common practice throughout the online gambling industry for years, but customers are starting to become frustrated that this is taking place. Regulators in New Jersey have threatened to fine sportsbook operators, but it’s clear that more needs to be done.
At a recent Tennessee Education Lottery meeting, this topic was discussed, but an official solution was not presented. The regulatory body agreed to take a closer look at this issue before determining the correct process.
The only rule on the books right now is that Tennessee sportsbooks are required to process withdrawals in a reasonable amount of time. There have not been many complaints filed by bettors in Tennessee, but the market is just a few months old.
An official report is expected to be released later this month after the group takes a close look at practices in other states. Changing the language of the current law is one option, or a separate law could be put in place.
There are currently four online sportsbooks in Tennessee, and three of them offer sports betting in New Jersey as well. As Tennessee adds new operators, there will be even more crossover between the two markets.
Tennessee also requires sportsbooks to hold 10 percent of all sports betting handle, which could entice these operators to delay withdrawals. This process could also chase bettors out of the state if they are unhappy with the withdrawal or banking transactions.
Increased Fines Coming to Operators
Last week, House Bill 133 was introduced, and it could give the Tennessee Education Lottery the power to assess larger fines to sports betting operators. These fines would be put in place for sportsbooks that knowingly accept bets from minors or anyone else not approved to place a bet.
The fines would double if this piece of legislation is approved, and it shows that the state is taking the industry very seriously. This law does not punish the bettor but instead places all of the blame on the operator.
This bill is currently in the Departments and Agencies Subcommittee, and it’s unclear how quickly it will be reviewed. The bill would have to pass through both the House and Senate before it lands on the governor’s desk for approval.
Language pertaining to accepting bets from out-of-state customers is also included, and this could force sportsbooks to increase the strength of their geolocation services. The Tennessee Education Lottery has not found any problems up to this point, but sportsbooks could face a large fine if this begins to happen.
Check back for more TN sports betting news and the latest sports news in The Volunteer State.
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