Tennessee's sports wagering handle nears $2B mark in first full year

According to a report from the Tennessee Education Lottery, the $1.7 billion in wagers placed have generated $156.6 million in sportsbook revenue and $2.8 million in taxes for the state of Tennessee, which is also the state to reach the $1 billion mark in online sports wagers the fastest.

New Jersey was the only other state to near the $1 billion mark with $928,134,172, and only eight states in total generated more than $100 million in sports bets during their first six months.

Tennessee is the only state in the U.S. with online-only sports betting market, and it is expected to finish its first year with the fourth-highest handle, behind New Jersey, Illinois, and Colorado.

“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.”

The state has eight approved sportsbooks: 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, reports the Nashville Post.

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.