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Good afternoon, everyone. Education scholarships at risk due to lottery shortfall... Property tax cap bill stalls in General Assembly... Will TN become the trash can for America's nuclear waste?... And much more!
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Sports bets up, lottery down, HOPE Scholarships out?
From Megan Podsiedlik
Since legalizing the lottery and online sports betting in Tennessee, the state has collected privilege fees designed to fund educational scholarships.
Last year, the General Assembly changed things up by rerouting sports betting funds to public school construction and maintenance—a change tied to the legislation that expanded the statewide voucher program—which has resulted in an $80 million shortfall for the state’s HOPE Scholarship program. Adding to the deficit, lottery ticket revenue fell by 20 percent in 2025.
Higher education officials and lawmakers are reviewing options to address the issue—including new legislation to revive workforce scholarships—but any changes would require legislative approval.
Background Since its establishment in 2004, the Tennessee Education Lottery Corporation has raised more than $8 billion to fund education in the Volunteer State.
“Students and families across the state continue to benefit from scholarships, grants, and after-school programs funded with Lottery dollars, and we remain committed to working hard to continue this strong momentum,” said Lottery President and CEO Rebecca Paul.
Tennessee outlawed private lotteries and the sale of lottery tickets in the 1830s due to a mix of religious, political, and corruption concerns. In 2003, the General Assembly authorized the Tennessee Education Lottery Corporation to operate games and generate funds for specific education programs after voters approved a constitutional amendment allowing the state to operate a lottery in November 2002.
Allowing online sports betting in Tennessee is a fairly new development that was passed in 2019 without Governor Bill Lee’s signature. Starting in November 2020, sportsbook companies in Tennessee paid a 20 percent privilege tax on their adjusted gross income to the Tennessee Education Lottery Corporation on a monthly basis.
The state treasurer would distribute the funds accordingly: 80 percent went to education lottery programs, 15 percent was distributed among local governments for infrastructure projects, and 5 percent went toward the state's regulatory and administrative costs.
Starting in July 2025, sports betting revenue was rerouted: 80 percent now goes to the School Construction & Maintenance Fund, 15 percent still goes to the General Fund to be distributed among local governments for infrastructure, and 5 percent now goes to the Department of Mental Health and Substance Abuse Services for responsible gaming prevention.
Fun Fact Based on the General Assembly Fiscal Review Committee’s findings, it is estimated that 20 percent of adults place sports wagers.
✹ METRO COUNCIL WATCH
New Council Watch Features We've added additional features to Council Watch. In addition to who's funding your councilmember, you can now see how they vote and who they vote with most frequently. (Take a Look)
LOCAL COLOR
💉 Sexton calls out Pharmacy Benefit Managers “PBMs paying influencers $13,000 for a single video that’s coordinated to protect the PBMs vertical integration model - aka monopoly,” wrote TN House Speaker Cameron Sexton in a post yesterday. “This year, TN is working hard to break-up pharmacy monopolies, increase competition, improve access and protect the free-market. It’s time the PBMs return their rebates to the patient, not keep them as enhanced profits.”
NON-LOCAL COLOR
🪖 Libertarian running for U.S. Senate makes unique campaign promise: “If elected, the first bill I introduce will draft Lindsey Graham into any conflict he publicly supports while in office,” posted Montana Senate candidate Tom Jandron on Wednesday. Jandron served 13 years in the Montana Army National Guard and worked as an aviation professional for nearly 20 years.
HEADLINES
- 💰 State plan to cap local property tax increases stalls. The bill would have limited local governments' ability to raise rates by requiring voter approval for any property tax rate increase over 2 percent was taken off notice in the House. (Axios)
- 👑 About 40 'No Kings' protests planned in Tennessee. Dozens of "No Kings" protests, demonstrations opposing President Donald Trump and his administration, will be taking place across Tennessee this weekend. (Tennessean)
- 🗑 Tennessee wants to bury the nation’s nuclear trash. Tennessee is in the running to become the nation’s disposal site for used nuclear fuel, and state lawmakers are already signaling their support: A Senate committee on Tuesday unanimously passed a resolution sponsored by Lt. Gov. Randy McNally and Sen. Ken Yager to support the effort. (WPLN)
- ✨ Tennessee Conservatives Coalition raises alarm over Grok/xAI. The group is flagging concerns about inappropriate content on the platform, particularly its exposure to minors and the nonconsensual, potentially illegal sexualization of individuals' name, image, and likeness. The state's ELVIS Act could come into play. The question now: will the Tennessee legislature and AG Jonathan Skrmetti move to address it?
DEVELOPMENT
- Bell Construction Starts Work on Humphreys County, TN Law Enforcement Center (Now Next)
- Metro Planning unveils urban core initiative (Post)
- Ex-law firm building downtown listed for $4.6M (Post)
- Owner of downtown building facing Metro fines (Post)
- Wedgewood-Houston set for Turkish cuisine restaurant (Post)
THINGS TO DO
View our calendar for the week here.
📅 Visit our On The Radar list to find upcoming events around Nashville.
🎧 On Spotify: Pamphleteer's Picks, a playlist of our favorite bands in town this week.
👨🏻🌾 Check out our Nashville farmer's market guide.
TONIGHT
🎸 Trampled By Turtles @ Ryman Auditorium, 7p, $65+, Info
🎸 Courtney Marie Andrews @ The Blue Room, 7p, $32.51, Info
🎻 Holst's the Planets w/ Nashville Symphony @ Schermerhorn Symphony Center, 7:30p, $77, Info
🪕 Tin Pan South @ Multiple Venues, Info
🪕 The Cowpokes @ Acme Feed & Seed, 12p, Free, Info
🎸 Kelley’s Heroes @ Robert’s Western World, 6:30p, Free, Info
SATURDAY
🎻 Holst's the Planets w/ Nashville Symphony @ Schermerhorn Symphony Center, 7:30p, $77, Info
🎸 Colony House @ The Pinnacle, 8p, $55.07, Info
🪕 Tin Pan South @ Multiple Venues, Info
🎸 Kelley’s Heroes @ Robert’s Western World, 6:30p, Free, Info
SUNDAY
🎻 Holst's the Planets w/ Nashville Symphony @ Schermerhorn Symphony Center, 2p, $77, Info
🪕 Bluegrass Jam @ Station Inn, 7p, Free, Info
+ a night for musicians and singers from all over the world to gather and enjoy making music together
🪕 Sundays Between with Easy Green @ Tennessee Brew Works, 1p, Info
+ a bluegrass celebration of the music of the Grateful Dead
📰 Check out the full newsletter archive here.
Finish Repealing Tennessee’s CON LawsToday's newsletter is brought to you by Davis Hunt, Megan Podsiedlik, and Camelia Brennan.