- Tennessee’s legal sports betting market generated $2.9 billion worth of sports bets in 2022.
- The state set a monthly record of $403.5 million in handle during October but that amount was erased by it $439.5 production in November 2022.
- Tennessee launched the first online-only legal sports betting market in the United States.
Tennessee’s online-only sports betting market has written nearly 50% more bets in 2022 than in 2021.
New record in Tennessee:https://t.co/btTxOVZJJS
— Rodney Knuppel (@KnuppelRodney) January 11, 2023
In 2022, Tennesseans have wagered $2.9 billion in sports bets, as compared to the 2021 final numbers which registered $2 billion. The hike comes after the Volunteer State registered a massive $439.5 million handle in November which eclipsed the previous record of $405.3 million which was set only a month earlier.
Record-Breaking November
According to data from the Sports Wagering Advisory Council, the state setting back-to-back monthly handle records in October and November 2022 marked only the first time in its 25-month history where the market produced consecutive $400 million months. November 2022 also set new records with $47.2 million in gross revenue and $45.2 million in adjusted revenue. It was also the second time in three month that operator gross revenue topped $45 million, after September’s $46.3 million.
Operators also posted a 10.8% hold during November which is the third-highest all-time in the history of Tennessee legal sports betting. Regulators also noted that the state’s Top 4 all-time hold percentage have come in the last four months, with November being the sixth month this year where the hold had reach double-digit percentage. Adjusted hold of 10.3% in November is third-highest all-time for the state and the 4th time in the last five months it ha cracked at least 10%.
With sports betting numbers hitting all-time highs, state taxes surpassed $9 million for November. Only New York, Illinois, Pennsylvania, and New Jersey have made more this year. The November total also improved Tennessee’s overall tax figures to $106 million, making it the sixth state to hit the $100 million all-time milestone, joining the four aforementioned states and Nevada.
Year-Over-Year Metrics also Up
November betting handle was up by 8% versus October 2022 and was also 20.2% better than November 2021. Hold during November was also up by 1.5 percentage points against the previous month, leading to a 26.7% increase in gross revenue.
AGR spread was also 1.7% higher on a month-over-month comparison, contributing to an increase of 29.7%. Adjuster revenue on a year-over-year contrast revealed the highest upward spike at 52.5% with the hold for November 2021 more than two percentage points lower.
In terms of year-over-year comparison, the latest numbers are significantly better than 2021. Total betting handle is up by 48.5% while gross revenue increased by 53.8% and adjusted revenue better by 61.9%. The $58.7 million in state taxes levied from January to November 2022 is $22.4 million better than its 2021 counterpart.
Tennessee’s Online Sports Betting
The Tennessee General Assembly approved its mobile-only legal sports betting market in 2019 or one year after the United State Supreme Court struck down the 1992 Professional and Amateur Sports Protection Act. It was then-Knoxville representative Rick Staples who filed the 2018 bill that paved the way for the legalization of sports betting in the state.
Then-Governor Bill Lee was opposed to expanding gambling in the Volunteer State. However, he chose to go along with the will of the Legislature and did not block the policy by allowing the Sports Gaming Act to become a law without his signature in May 2019. Legal sports betting went live on November 1, 2020 as the first online-only legal sports betting market in the U.S.
20% of the sports betting operators’ revenues are remitted to the state, with 80% of the sports betting revenue taxes going to the education fund. Of the remaining amount, 15% is distributed to local governments while 5% goes to mental health programs. Tennessee sports betting operators are required to renew their license every year and pay an annual fee of $750,000.
