Tennessee Sports Betting Handle Tops $375 Million
State Sees Betting Decline For Third Straight Month
The Tennessee sports betting handle showed there was a bit of good news and bad news for the month of February. The good news was the $378.2 million wagered for the month indicated a 15.6% increase from February 2023. The bad news was that the amount resulted in a significant decrease from the $465.8 million wagered in January to the $495 million bet in December. A drop in betting is typical, but February marked the third straight month that has seen declining revenue. March could see a rebound with the NCAA Basketball Tournament taking place, as more people partake in spread and over under betting. The fact the Volunteers are one of the best college basketball teams in the country should help attract more wagers.
The Tennessee Sports Wagering Council is behind other states when it comes to releasing information. There are no breakdowns from individual sportsbooks or showing how much was bet at retail sportsbooks or how much came through mobile sports betting. The state presents the Tennessee sports betting handle for the month and how much was made in taxes. Tennessee made $6.98 million in “Privilege Tax” for the month of February. That amount was based on the Tennessee sports betting handle for the month.
Different Taxation Method
Unlike other states, which tax the sportsbooks on revenue earned, Tennessee taxes states 1.85% of all money it receives in wagers. It is the only state that taxes based on handling rather than revenue. The state would make more money if the Tennessee sports betting handle were high.
The state is likely making a little bit less in taxes by charging on handle compared to revenue, but there is something to be said for taking a guaranteed profit. This way, the state doesn’t have to be concerned about how much or how little the sportsbooks have made. Other states are likely keeping an eye on Tennessee and how much money the state brings in.
Tennessee dedicates nearly 80% of the revenue generated from sports betting to education. Close to 15% of revenue is distributed to local governments, and the remaining amount goes to assorted mental health programs. The state has raised more than $200 million since it started accepting sports wagers.
State Offers Online Betting Only
Another difference in the state is all sports betting is done online. There are no retail sportsbooks in Tennessee, just as there is no casino online gambling in the state. The state has managed to attract most of the sportsbook giants in the state, including FanDuel, DraftKings, BetMGM, and Caesars. Fanatics is the latest sportsbook to open in the state. It began accepting online wagers in 2023. Many of the sportsbooks have partnerships with professional teams. BetMGM is the official sportsbook partner of the Tennessee Titans, while the Memphis Grizzlies have had deals with several different sportsbooks. Caesars Sportsbook became an official sports betting partner of the NBA team in 2022. Sports betting has been legal in Tennessee since 2019, but the first sportsbooks didn’t go online until the following year.
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