Tennessee Sports Betting Follows National Trend in April 2024

Tennessee is mirroring a trend seen across the nation with decreases in spring/summer sports betting activity, but legal sports wagering states are still experiencing year-over-year growth. This is becoming the norm for top sports betting sites as seasons shift.

The Tennessee Sports Wagering Council (SWC) released its April revenue report on Friday. Although overall wagers decreased by almost $100 million compared to March, they saw an increase of nearly $60 million compared to the previous year.

Regulators and sports betting providers are pleased with the increase in betting activity in Tennessee’s sports betting market compared to last April. Despite concerns that the launch of Kentucky’s legal sports betting platform would impact Tennessee’s market, there has been no significant impact so far.

$384.2 million in gross wagers

In April, Tennessee bettors collectively spent $384.2 million on Tennessee sports betting apps and retail sites. After adjustments, the total amount spent was $380.9 million. This was a significant decrease from the previous month, which was fueled by the NCAA Basketball Tournament, but still showed a $60K increase from February’s wagering activity.

The increase from $318.4 million in April 2023 to more than 20% is noteworthy, especially with the recent launch and success of Kentucky’s legal sports betting scene. Tennessee residents have clearly been actively participating in sportsbook promos.

Mixed tax and revenue results

In April, Volunteer State saw mixed results in revenues and tax contributions, with anticipated decreases compared to the previous month but increases compared to the same time last year.

In April, Tennessee sports betting sites reported revenues of almost $38.1 million, marking a decrease of $9.3 million from March. However, this figure reflects a positive year-over-year increase of nearly $4 million compared to April 2023’s revenue of $34.26 million.

In April 2023, Volunteer State sportsbooks generated a 10% hold rate, contributing approximately $7 million in taxes to support state and local needs. This figure represents a decrease from the previous month’s 19.5% hold rate, which brought in $8.7 million in taxes, but marks a 9.3% increase from the $6.44 million reported in April 2023.

Looking forward

Following April, Tennessee will enter its usual period of decreased sports betting activity until September when the next NFL season begins. Despite this, analysts are predicting continued growth in the state’s sports wagering market throughout the summer, as has been the trend in every month so far in 2024. This growth is expected to occur even in the face of competition from a thriving legal sports betting industry in neighboring Kentucky, which could potentially impact Tennessee’s overall revenue.

In May, Tennessee’s monthly sports betting handle fell below $300 million, dropping to just $214.1 million in July.

Aside from a condensed NBA playoff schedule, basketball doesn’t have much of an impact on Tennessse sportsbooks. With the NFL season concluded, including the Draft, baseball will now have to take the lead in driving the Volunteer State industry.

Baseball has not yet established itself as a consistent force in Tennessee sports betting apps. There is hope that the sport can help maintain the state’s sports betting momentum and that yearly growth will be the focus, rather than a seasonal decline in spring and summer.