Tennessee Earns Year-Over Year Sports Betting Increase in June

On Tuesday, the June report from the Tennessee Sports Wagering Advisory Council (SWAC) was published.

Despite month-over-month declines in Tennessee sports betting, there was positive news when looking at the year-over-year numbers.

Tennessee is the most recent state to experience a decrease in sports betting activity in June. July and August are typically slow months for legal sports betting in the U.S., with bettors in Tennessee and nationwide eagerly anticipating the start of the NFL season in September.

Take a look at the best promotions offered by Tennessee sportsbooks in preparation for the upcoming football season.

June handle slide in Tennessee

During June, the Sports Wagering Advisory Council in Tennessee reported $230.3 million in total sports bets, marking a 17% decrease from the $279.8 million wagered in May. This amount is slightly more than half of the record $440.4 million collected in December 2022 through the top sports betting apps.

Compared to June 2022, the year-over-year handle figures show a more positive trend, with spending on sports betting in Tennessee increasing by 6.7% to $230.3 million from $215.8 million.

As far as revenues go…

Tennessee experienced a challenging month in June when it came to sports betting revenues and tax collections for important state and local programs. The legal sports betting industry in Tennessee saw a decrease in gross gaming revenues, with only $25.5 million reported in June compared to $37 million in May, representing a 35% drop.

The decrease in Tennessee sportsbooks’ hold rate to 2.2% may be contributing to the significant drop in profits. In June, the top sportsbooks in the state held 11.1%, down from 13.3% in May.

In June 2022, the Tennessee sports betting app saw an increase in revenues compared to the previous year, with a total of $15.86 million. During that time, the hold rate was only 7.3%.

In June, the adjusted gross income of Volunteer State providers was $21.1 million, resulting in $4.6 million in taxes paid. This marks a decrease from the $7.1 million paid in May.

In June 2022, Tennessee sports betting providers only paid $2.56 million in taxes.

Changes afoot

As of July 1, the Tennessee legal sports betting industry implemented new regulations for their platform. The previous controversial rule mandating operators to hold at least 10% has been eliminated, giving sportsbooks more flexibility. This change could result in more competitive betting lines for bettors in the Volunteer State.

The taxation of sports betting in the state has been revised, with operators now being taxed based on their total handle, or the total amount of bets they accept. Previously, Tennessee providers were taxed at a rate of 20% on adjusted revenue. As of July 1, they are now subject to a tax rate of 1.85% on their monthly handles.

As of July 1, providers in the Tennessee legal sports betting industry will no longer be exempt from fees. They will now be required to pay a license fee or renewal fee ranging from $30,000 to $150,000, marking a significant change for those operating in the Volunteer State sports betting market.