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Tennessee Underscoregs Experience Month-Over-Month Handle Drop

Davis Isabela

Updated as of January 18, 2024 at 2:48 PM EST. Read time: 1 minute and 35 seconds. Find more information on Twitter and Google News.

Josiah-Jordan James of Tennessee as we look at the Volunteer State sports betting financials for January 2024.
Josiah-Jordan James and Jonas Aidoo of the Tennessee Volunteers celebrate a 3-point basket at Thompson-Boling Arena in Knoxville, Tennessee. Photo by Eakin Howard/Getty Images via AFP.

The rise in sports betting activity across America’s competing jurisdictions in December has been widely reported, but Tennessee went against this trend last month with a decrease in month-over-month handle. The best sportsbooks in the Volunteer State did not perform as strongly as in other states.

In the December report from the Tennessee Sports Wagering Advisory Council (SWAC), it was noted that eight sports betting apps in Tennessee experienced decreases in both overall handle and sportsbook revenues compared to the previous month. However, there was a positive trend with wagering activity and sportsbook profits increasing when compared to the previous year.

$495 million December handle

In December, Tennessee’s mobile-only sports betting platform saw $495 million in wagers, just shy of the $500 million mark reached in the previous month. November was the only month where Tennessee sportsbooks surpassed $500 million in wagers since the platform’s launch in November 2020, making it the highest handle ever recorded as the state enters 2024.

In December, despite a decrease from November, Tennessee residents still capitalized on sportsbook promotions, resulting in the second-highest sports betting handle ever recorded in the state’s legal sports betting industry.

December’s handle decreased by $22 million or 4.2% compared to the record $517.1 million reported in November. Despite this drop, it reflects a 12.4% or $55 million increase from the $440.45 million reported in December 2022.

Revenues reveal mixed result

Tennessee sports betting sites saw a decrease in monthly handle, but an increase in revenues compared to the previous year.

Tennessee providers recorded a strong revenue of $49.5 million in December, the second-highest in state history. However, this figure was $2.2 million lower than November’s record month. Compared to December 2022, revenue totals increased by approximately $325K.

In December, Tennessee sportsbooks generated $9.1 million in taxes, marking the third-highest total in the state’s sports betting history. The only months with higher tax contributions were November 2023 with over $9.5 million and December 2022 with $9.4 million. Interestingly, despite December 2022 having a 12.4% lower handle than December 2023, it still managed to generate higher tax revenues.

By December, Tennessee had been using its new taxation system for state sportsbooks for five months. The new system involves regulators collecting a 1.85% tax rate on gross handle, a change from the previous tax rate of 20% on adjusted gross income that had been in effect from November 2022 to July 2023.

80% of the monthly revenue from sports betting taxes is allocated to the Tennessee Lottery for Education Fund, 15% is designated for the state’s General Fund, and 5% is set aside for Tennessee’s Department of Mental Health.

In December 2023, Tennessee sportsbooks had a hold of 10%, compared to 11.2% in December 2022 and another 10% in November 2023.

Written By:
Davis Isabela
Davis Isabela is the Editor-in-Chief of Underscoreg Review. He has been a writer, reporter and editor for more than 20 years, and his work has appeared in more than 200 publications across North America. His first book, “100 Greatest Canadian Sports Moments”, was a hardcover best-seller in Canada in 2008. He has written more than 50 sportsbook reviews and dozens of other sportsbook-related content articles. James has also been quoted as a sports betting expert in USA Today and Sports Illustrated.