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Sports Betting Activity in Tennessee Slips to Lowest Level Since August

Perry Sandra

Updated on June 16, 2023 at 1:24 PM EDT • Read time: 1 minute and 50 seconds. Twitter: [insert link] Google News: [insert link]

Santiago Vescovi #25 of the Tennessee Volunteers features in our March Madness prop bets.
Santiago Vescovi #25 of the Tennessee Volunteers handles the ball against Jalen Dalcourt #5 of the Louisiana Lafayette Ragin Cajuns in the first round of the NCAA Men’s Basketball Tournament on March 16. Mike Ehrmann/Getty Images/AFP

Tennessee’s top sports betting apps are currently experiencing a slowdown in legal sports betting activity during the spring-summer season. The latest earnings report for May shows a significant decrease compared to previous months, particularly during the winter and early spring when NFL and NCAA basketball were driving higher betting handles and revenues in the state.

While monthly sports betting in Tennessee has declined, a deeper analysis of May’s data shows a surprising increase in year-over-year growth in the state’s legal sports betting industry. Tennessee is among a small group of states experiencing a rise in wagering activity compared to the previous year.

In May 2023, Tennessee changed its tax structure for legal sports betting, shifting from a 20% tax rate on gross gaming revenues to a 2% tax on the total monthly handle for betting sites in the state.

In Tennessee, a new sportsbook called Zensports has entered the market, becoming the 13th operator in the Volunteer State. This launch will impact June’s sports betting numbers, but there are still improvements needed for ZenSports users to have complete access to all the features the provider offers.

Tennessee’s May sports betting numbers

In May, Tennessee’s top betting sites generated a total of $279.8 million in wagers, marking the lowest amount since August, according to the Tennessee Sports Wagering Advisory Council.

May’s sports betting total of $279.8 million is approximately 12% lower than April’s total of $318.4 million. However, it represents a 6.9% increase from May 2022’s total of $261.5 million in bets.

Adjusted gross revenues from legal sports betting in May reached $35.7 million, with a hold rate of 13.9%. This marks an improvement from the $32.1 million generated in April, which had a hold rate of 10.4%. Year-over-year, adjusted gross revenue increased by an impressive 50% compared to May 2022, when revenues were $27 million.

Tennessee sports betting sites paid $7.1 million in taxes, showing a significant improvement of nearly $700,000 from April and a $2.4 million increase from the $4.8 million paid in May 2022.

Changes in the Tennessee market

A new sports betting provider will be entering the Tennessee legal sports betting market in June. Additionally, a new tax structure will be implemented where 2% of the total handle for the state’s top betting sites will be charged, rather than the usual 20% on operators’ gross gaming revenues.

It is worth noting that if the 2% handle tax had been introduced in May, tax revenue would have totaled $5.6 million, representing a 21% decrease compared to the $7.1 million generated from the 20% tax on GGR in May.

Don’t miss out on Tennessee sportsbook promotions if you are in the state of Tennessee.

Written By:
Perry Sandra
Perry Sandra and betting go hand-in-hand. Both are characterized by “odds”. Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn’t found a sport yet that can’t contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.