The sports betting landscape in Tennessee displayed considerable growth year-over-year this past April, closely mirroring the 20.6% increase observed in March. Despite a strong showing, the April figures were noticeably lower than the betting action seen in March, which benefits from a packed sports calendar.
The month of April showcased a gross betting handle of $380.9 million, a dip from March’s substantial $473.6 million total. The decrease can partly be attributed to the fact that March’s sports events packed the calendar, fueling higher betting volume. Notably, $3.3 million of the recorded gross handle for April was due to adjustments, reflecting a complex and dynamic betting arena.
In comparison to the previous year, the privilege tax collected from sports betting activities rose by 9.4%, amassing a total of $7.0 million for the state coffers. The uptick in privilege tax revenue is a positive sign for the state’s fiscal benefits from regulated sports betting.
The regulatory body, the Tennessee Sports Wagering Council, does not release detailed information regarding monthly revenues or performance data on individual sports betting operators. This leaves certain aspects of the market’s financial health opaque to public analysis.
Despite the lack of granular data, it is evident that Tennessee’s sports betting market is vibrant and is home to some of the United States’ foremost betting brands. Industry leaders such as BetMGM, FanDuel, and DraftKings have been operational since the state’s legal betting market opened in November 2020, anchoring the jurisdiction as a competitive market for sports betting.
Among the newer entrants to the Tennessee sports betting market is Fanatics Sportsbook, which went live in August of the previous year. Another relative newcomer shaking up the industry is ESPN Bet, which launched its sports betting brand in Tennessee last November, simultaneously making a splash in 17 other states.
Other active brands in the Tennessee market include Hard Rock Bet, which debuted in the state in September 2022. Moreover, the prominent Caesars Sportsbook conducts sports betting operations through a multi-year partnership with the Memphis Grizzlies, further embedding itself in the fabric of Tennessee’s sports culture.
The sports betting environment in Tennessee is diversified, offering consumers a range of options for placing wagers on events that span the spectrum of sporting activities. From local favorites such as basketball and football to international sports, the industry has tailored its offerings to cater to a wide clientele, harnessing the power of technology and capitalizing on the growing trend of mobile and online betting.
Despite the fall in the total gross handle in April compared to the previous month, the Tennessee sports betting market continues to demonstrate a robust and growing interest from bettors, providing the state with a lucrative and developing revenue stream. As the market matures and possibly evolves with new regulatory disclosures, the state, bettors, and operators will likely find new opportunities for expansion and profit.
In a rapidly changing sports betting environment, it is clear that Tennessee is not just playing catch-up but is actively shaping its market to be at the forefront of the industry. The rise in year-over-year gains is indicative of the state’s capacity to generate sustainable fiscal benefits while providing consumers with an engaging and responsible sports betting experience.
