The sports betting market in Tennessee showed strong momentum in April this year, with total wagers reaching $463.6 million, a 21.7% increase from the same period last year, reflecting the ongoing expansion trend of the state's market. However, this figure is still less than the $548.6 million in March, a month-on-month decrease of 15.5%, showing the impact of seasonal fluctuations.
According to data released by the Tennessee Sports Betting Commission, the total wager amount in April, after deducting an undisclosed "adjustment" of $3 million, was corrected to $466.5 million. This revised figure represents a year-on-year increase of 21.4%, but still lower than the previous month. It is important to note that the Tennessee gambling regulatory authority does not disclose specific gambling revenues or detailed performance of each operator.
Nevertheless, the gambling privilege tax in April still reached $8.6 million. According to the new tax model implemented by the state in July 2023, all licensed operators are required to pay taxes at 1.85% of the total wager amount. It is worth mentioning that Tennessee is the only state in the US that uses the total wager amount as the tax base, a unique practice that differs from other states that tax based on operator gross revenue.
Currently, there are 11 licensed online sports betting companies actively operating in Tennessee, including well-known brands such as FanDuel, DraftKings, Fanatics, ESPN Bet, BetMGM, Caesars, Bally Bet, and Hard Rock Bet. Additionally, Betly, ZenSports, and the local platform Tennessee Action 24/7 are also actively participating in market competition.
Since the legalization of sports betting in April 2019, Tennessee has consistently maintained an online-only betting market, with retail physical store betting still illegal in the state. The state's first batch of online operating platforms officially launched in November 2020, marking the beginning of the modern development process of sports betting in Tennessee.
Overall, despite the expected month-on-month decline in April due to the end of major sports events (such as the NCAA Tournament) in March, the year-on-year growth still highlights the resilience and potential of the Tennessee market. With stable regulations and continued investment from brands, the sports betting market in the state still has considerable room for growth.
