Tennessee Sports Betting Surges to Record $551M Handle in October

The sports betting market in Tennessee hit a new milestone in October, with bettors wagering a record-breaking $551.2 million, according to the Tennessee Sports Wagering Council (SWC). This marks only the third time the state’s handle has sured $500 million since its launch in November 2020. Adjustments totaling $3.4 million reduced the gross handle to an adjusted total of $547.8 million, still an all-time high. The previous record of $520.8 million was set just one month earlier, in September.

This impressive surge in activity was not only a reflection of Tennessee’s thriving sports betting industry but also highlighted its growth trajectory. Compared to October 2023, the handle increased by $107.4 million, or 23.4%, showcasing significant year-over-year progress.

Record Tax Revenues for the State

October also set a record for tax revenue, with operators paying $10.1 million to the state. This is the first time monthly tax collections crossed the $10 million threshold, suring the previous high of $9.6 million recorded in September. Tennessee’s 20% tax rate on digital sports betting operators continues to yield substantial returns for the state, ing public initiatives.

This milestone also marks a notable jump from October 2023, when operators contributed $8.2 million in taxes. The steady growth reflects the increasing engagement of bettors and the effectiveness of Tennessee’s digital-only betting framework.

Tennessee’s sports betting market operates uniquely as an online-only model, the first of its kind in the United States. Unlike other states that feature physical sportsbooks, Tennessee has embraced a fully digital approach, with 12 licensed operators currently active. Major players such as BetMGM, FanDuel, DraftKings, and Caesars dominate the market, alongside smaller platforms like Bally Bet, which entered the state in 2024.

Bally Bet’s arrival brought new options for Tennessee sports fans, expanding an already diverse betting ecosystem. The company’s longstanding partnership with the NHL’s Nashville Predators underscores its commitment to the state.

Bovada’s Exit from Tennessee

In a notable enforcement action, offshore sportsbook Bovada exited Tennessee after receiving a cease-and-desist letter from the SWC earlier this year. The company also faced a $50,000 fine for operating illegally within the state. With this move, Tennessee became the 16th U.S. jurisdiction Bovada has left.

SWC Chairman Billy Orgel praised the regulatory effort, stating, “Our licensed sportsbook operators provide important consumer protections not found in the illegal market, and the closure of Bovada’s virtual doors in Tennessee is an important step toward the eradication of unlicensed, illegal sportsbooks in Tennessee.”

NFL Betting Drives Growth

The ongoing NFL season has significantly influenced Tennessee’s betting figures. While the SWC does not provide a sport-specific breakdown, the performance of the Tennessee Titans likely played a role in wagering patterns. The Titans have struggled this season, losing seven of their first nine games, which may have contributed to favorable outcomes for sportsbooks.

Tennessee’s sports betting market may continue its upward trajectory. November 2023 saw a handle of $515.5 million, representing a 16.2% month-on-month increase from October that year. If this trend repeats, the November 2024 handle could exceed $600 million, setting yet another record.

With its unique online-only approach and a growing roster of operators, Tennessee remains a leader in the U.S. sports betting industry. The market’s expansion demonstrates the potential of digital-first models in catering to a wide audience while ensuring robust consumer protections.

Source:

”Tennessee operators set record for handle”, igamingbusiness.com, November 13, 2024.