As the industry numbers roll in, it’s clear that Tennessee’s online sports betting landscape is reflecting a blend of growth and contraction. Recent figures for February’s total betting handle have illustrated this dichotomy, showing both progress and retreat in the volatile market. The total handle for February clocked in at 15.6% higher than that of the same month last year, an encouraging sign that the market is still expanding on an annual basis.
However, this year’s February handle of $380.4m trailed behind January’s $465.8m by a notable 18.8%. These figures take into account $2.2m in adjustments. The raw data, therefore, reveals that February’s gross handle for online betting in Tennessee—without adjustments—reached $380.4m, representing a 16.2% increase year-over-year. Nevertheless, while demonstrating annual growth, February’s gross handle indicates an 18.6% decline from the previous month, underscoring a month-on-month volatility.
The privilege tax collected for February 2023 amounted to $7.0m. This represents an increase of 9.4% relative to February last year, yet a decrease of 18.6% from the $8.6m registered in January. This tax revenue is critical for delineating the overall health and contribution of the online sports betting industry to the state’s coffers.
The Tennessee Sports Wagering Council (SWC), responsible for providing transparency in the industry, chose not to share the data in terms of operator revenue. They have, however, been the supervisory body since the launch of legal online sports betting in the state. The Securities and Exchange Commission (SEC) oversees the licensing and regulation of online sports wagering within Tennessee but did not disclose information by specific licensed operators.
Tennessee burst onto the scene of legal online sports betting in November 2020, with big industry players like FanDuel, DraftKings, and BetMGM going live on day one. Since then, the market has seen considerable growth over the past three years, as new operators joined the mix, diversifying options for bettors across the state. The most recent operator to go live is Fanatics Sportsbook, which started its operations in August 2023.
Additionally, ESPN Bet made a significant entrance into the Tennessee market as part of a broader launch across 17 states. Meanwhile, the renowned Hard Rock brand extended its presence in Tennessee in September 2022, complementing its three existing Hard Rock Cafés in the state with a new sports betting platform.
Caesars Sportsbook also made a distinctive mark on Tennessee’s sports betting landscape through a multi-year partnership with the Tennessee-based NBA team, the Memphis Grizzlies. This move in August 2022 aligned one of the city’s major sports franchises with the gaming giant, which is likely not only to enhance fan engagement but also to position Caesars as a key player in the Tennessee market.
In sum, the latest figures for Tennessee’s online sports betting reveal a complex picture of growth juxtaposed with short-term declines. The industry is showing signs of healthy year-on-year expansion, though the month-on-month downturns denote the challenges of sustaining consistent growth. As new players enter the field and partnerships with major sports teams solidify, it’s evident that Tennessee’s online betting landscape continues to evolve. The battle for market share is ongoing, as operators aim to maintain and attract clientele amidst this hyper-competitive environment. The coming months will be critical in determining whether this emerging market can stabilize and sustain an upward trajectory.
