The summer slowdown continued for sports betting in Tennessee, as state sportsbooks announced their lowest handle of 2022 in June — and another month with a sub-10% adjusted hold rate.
The Tennessee Sports Wagering Advisory Council (SWAC) recently released June’s numbers, showing the state's handle for last month was approximately $215.78million — down 17.6% from May's results, although up 19.2% year-over-year.
Tennessee sportsbooks, which only offer online sports betting, paid out $199.9 million to bettors this past month, leaving $15.8 million in gross gaming revenue (GGR) for operators, which was a significant drop from the $27.3 million brought in the previous month.
That results in a 7.4% win rate for operators... a large dip from May’s 10.4% mark.
After roughly $3 million in adjustments, the official gross income for Tennessee operators in June was $12.8 million. The adjusted hold percentage for operators — which by law must average at least 10% for the year — was 5.9%.
Looming Hold Requirement
When they allowed legal sports betting, Tennessee lawmakers instituted a 10% adjusted hold requirement to guarantee the state a stream of revenue. Sportsbooks that do not meet the minimum are either fined $25,000 or can pay the difference to meet the 10% threshold.
At this rate, it looks like operators may have tough decisions to make. In 2022, the adjusted hold percentage for operators has been lackluster:
The Volunteer State taxes operators 20% of revenue (after deducting free bets and other adjustments), resulting in taxes paid by Tennessee sportsbooks for the month at $2.6 million, again down from May’s gains of $4.8 million. The 20% tax rate is higher than most states, including neighboring Virginia, but that hasn’t stopped operators from seeking licenses in Tennessee.
Currently, 12 online sportsbook operators have licenses to take bets via SWAC’s website, although only nine are currently live.
