Tennessee's year-over-year sports betting handle increased 21%.
Key takeaways
- Handle fell month-over-month, as expected based on the sports calendar.
- Year-over-year action continued to grow.
- Tennessee’s tax structure made its March haul quite effective.
As expected, the Volunteer State's April action fell month-over-month. Despite all 1 seeds in March Madness' Final Four, it wasn't enough to entice bettors like the first few rounds of the NCAA tournament. The Tennessee Sports Wagering Council (SWC) announced statewide operators took in $466.5 million in bets last month, 15% lower (roughly $45 million) than March’s handle. After a roughly $3 million adjustment, handle was $463.5 million. As a result, the state's tax bill came in at $8.5 million, down from $10.1 million.
While month-over-month numbers declined, compared to 2024, April was a pretty good month. In that context, Tennessee’s yearly handle grew 21%.
Tennessee’s tax haul beats the competition
Over the past couple of years, sportsbooks reduced their customer acquisition spend and focused on improving revenue. The problem is, sometimes bettors collectively get it right and this March, that was the case.
Bettors like parlays and like picking favorites. For the NCAA Tournament there was a significant lack of upsets, meaning sportsbook income dropped. However, the Tennessee sports betting market unlike other states, taxes operators on their total handle instead of hold.
Neighboring Virginia reported a $690 million handle, over $150 million greater than the Volunteer State, but its tax bill was just $6.5 million, well below Tennessee’s $10.1 million.
North Carolina had a similar story, where its $685 million in betting action was a statewide record but the legislature only saw $6.9 million.
Kentucky trailed in both respects, with a $293 million haul and $2.7 million in tax revenue.
