Tennessee Sports Betting Reaches $13 Billion Milestone, Funds State Initiatives

It’s been five years since Tennessee lawmakers ed a bill legalizing online sports wagering, and since then, the state has seen more than $13 billion in gross wagers, with nearly $240 million of that money returning to the state.

Prior to the legalization of sports betting, it was estimated that $3 billion was being wagered illegally in Tennessee. The new law not only established protections for consumers but also created a new revenue stream for the state.

“We already have billions of dollars that leave the state going to other states that have casino gambling, so here’s a chance to do in-state sports betting that would capture dollars,” said Rep. Rick Staples (D-Knoxville) in a 2018 interview with News 2.

Sportsbooks went live in November 2020, and the Tennessee Sports Wagering Council’s executive director, Mary Beth Thomas, noted that there were already millions of dollars in wagers being placed.

“Since that time, we have seen growth in both the number of participants and the volume of betting,” Thomas said. “Tennesseans are clearly enjoying sports betting.”

As of the latest data, Tennessee boasts approximately 1.5 million open betting s, with over $13.25 billion in gross wagers. Nearly $240 million, termed the privilege tax, has been reinvested back into the state. This revenue distribution s the HOPE Scholarship (80%), local government infrastructure projects and emergency services (15%), and responsible gaming initiatives and treatment via the TN Department of Mental Health (5%).

“That provides a lot of scholarship money and a lot of help to local governments that would like a boost to their funding for important projects that they have,” Thomas explained.

In addition to the economic benefits, another key objective of legalizing sports betting was to protect consumers and ensure compliance among state-licensed sportsbooks. Thomas highlighted that a recent audit by the Comptroller’s Office found no issues, demonstrating the effectiveness of Tennessee’s sports wagering regulations.

“I think that Tennessee has done a great job at balancing the interest in sports wagering and our need to regulate it in a fair and transparent manner so that Tennesseans have comfort that the sportsbooks that are licensed by the state of Tennessee are adhering to the law and doing the right thing,” Thomas stated.

Furthermore, advertising by sportsbooks in Tennessee must include resources for gambling addiction, such as the Tennessee REDLINE or 1-800-GAMBLER. The state also offers a self-exclusion service, allowing gamblers to voluntarily opt out of gambling by filling out a form through the Tennessee Sports Wagering Council or directly through a sportsbook.

The impact of legalized sports betting in Tennessee is evident in the substantial funds it generates for state initiatives, from education to infrastructure and mental health. The state’s careful regulation ensures that this growing industry benefits Tennesseans while maintaining consumer protections and ethical standards.

Source:

“Sports betting generates $236M for Tennessee since legalization in 2019”. WKRN.COM, June 13, 2024.