As Tennessee approaches its first full year of legalized sports betting, the state is nearing $2 billion in wagers placed.
According to a report from the Tennessee Education Lottery, the $1.7 billion in wagers placed have generated $156.6 million in sports book revenue and $28.8 million in taxes for the state.
Tennessee also reached $1 billion in online sports wagers the most quickly. Only eight states generated more than $100 million in sports bets during their first six months, and New Jersey ($928,134,172) was the only other state to come close to the $1 billion threshold.
“Tennessee is only beginning to scratch the surface of its potential,” PlayTenn.com analyst Nicole Russo said. “Its roster of operators is growing, and its online-forward design is appealing. Better transparency in the market’s regulation would go a long way in moving the market forward. And removing the state’s 10% hold requirement on operators would help, too, even as it looks like the rule might be here to stay.”
Tennessee, which is the sole online-only sports betting market in the U.S., will likely finish with the fourth-highest handle (total amount of bets accepted) in its first year, behind New Jersey, Illinois and Colorado.
The state has eight approved sports books: DraftKings, FanDuel, BetMGM, Caesars Sportsbook, WynnBet, Bartsoool Sportsbook, TwinSpires and Action 24/7.
Nearly quadrupling the record for highest handle in its first month, Tennessee brought in $131 million from wagers in November 2020. Indiana held the previous record with $35.2 million in its first month in 2019.
Since then, Tennessee hasn’t had a month with fewer than $144 million in sports wagers placed, peaking in January 2021 with $211.3 million in wagers and $20.9 million in revenue generated.
Eighty percent of the tax revenue goes to the TEL, 15 percent goes to local governments for infrastructure projects and the remaining 5 percent goes to state-funded gambling addiction programs organized by the Tennessee Department of Mental Health and Substance Abuse.
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