Tennessee's first week of sports betting sees $27M handle

Over $27 million in wagers were placed during the first week of online sports betting in Tennessee, according to a report released by the Tennessee Education Lottery, which oversees sports wagering in the state.

From Nov. 1 through Nov. 8, the four major sportsbooks in the state — BetMGM, DraftKings, FanDuel and Tennessee Action 24/7 — paid out an estimated $23.9 million and earned an adjusted gross income of roughly $2.54 million, while the state of Tennessee earned $509,000 in taxes on the $27.4 million wagered. More than $5 million in bets was placed on Nov. 1, the first day of online gambling in the state, officials said. A majority of the wagers were placed on football, divided between NFL (60 percent) and college (40 percent).

“In our role as the regulator of this industry, we are focused on establishing and supporting a responsible and competitive sports wagering program in Tennessee,” Lottery President and CEO Rebecca Paul Hargrove said in a statement. “These numbers are encouraging as we work to protect the consumer, promote fairness in sports and regulate this new Tennessee industry that provides critical funds for education, as well as local governments and problem gambling services.”

According to the Lottery, 80 percent of the tax collected will go to the Lottery for Education account; 15 percent will go to the General Fund for local governments on a per capita basis; and 5 percent will go to the Department of Mental Health and Substance Abuse Services to oversee grant programs for gambling treatment services.

All four sportsbooks offer sign-up incentives, including an instant match of $500 on first deposit (BetMGM), a first deposit bonus up to $1,000 (DraftKings), a risk-free bet up to $1,000 (FanDuel) and a first deposit match up to $100 (Tennessee Action 24/7).

There are currently three additional sportsbooks waiting for license approval in Tennessee: BetAmerica, William Hill and WynnBET.