Tennessee Follows Pattern of February 2024 Sports Betting Declines

Tennessee sports betting apps, including top sportsbooks, reported a mix of revenue results for February. While figures were lower compared to the previous month, there was an improvement in year-over-year numbers in the Volunteer State.

According to the February report from the Tennessee Sports Wagering Council, Tennessee’s top sportsbooks have had a strong beginning to 2024 despite a slight decrease in handle and revenue figures compared to the previous month. Overall sports betting activity in the Volunteer State has increased by 14.4% in the first two months of the year compared to the same period last year, with Tennessee sports betting apps experiencing high levels of engagement.

Nevertheless, February marked the third consecutive month of decline for Tennessee’s sports betting industry, with the state’s handle reaching its lowest point since September 2023.

$378.2 million February handle

In February, Tennessee sports bettors wagered a total of $378.2 million with state sportsbooks, likely making use of various Tennessee sportsbook promotions. This amount marks an 18.8% decrease from January’s $465.8 million, which was the third-highest handle month in Tennessee history. Despite this drop, February’s total represents a 15.6% increase from the $327.3 million wagered in February 2023.

The state’s handle dropped below $400 million for the first time since September.

In February, adjustments totaling $2,155,742 were factored into the sports betting take in Tennessee.

As previously stated, the sports betting handle in Tennessee for the first two months of 2024 has surpassed the activity seen in the same period in 2023. In January and February, a total of $844 million was wagered, representing a 14.4% increase compared to the first two months of the previous year.

Tax revenue slips

The Tennessee Sports Wagering Council (SWC) differs from other legal sports betting states in America by not disclosing any revenue data from state sportsbooks or winnings for state providers.

As a result, it is extremely difficult to calculate the specific financial gains that each individual operator receives from the state’s handle on a monthly basis, as well as the exact percentage of tax revenue that is derived from the overall handle.

In July, Tennessee made the decision to change its tax structure for gaming revenues from taxing 20% of gross gaming revenues to taxing 1.85% of the state’s gross handle. This switch has sparked some controversy and raised concerns about potential missed revenue opportunities for the state’s tax collection.

In February, a total of $6,980,317 in privilege tax was assessed, marking a $1.6 million decrease compared to January, which was the state’s third-best handle month. This represents a 9.4% year-over-year increase in tax contributions from sportsbooks in the Volunteer State, amounting to a $600,000 rise.

Nevertheless, state taxes paid by state providers have increased by approximately $1.9 million year-to-date compared to the same two-month period last year. Tennessee sports betting apps have contributed $15.6 million in taxes in the current year.