Tennessee’s sports betting landscape witnessed a substantial 13.4% year-over-year surge in the handle, reaching $378.2 million in February. While this marks the third consecutive month of decline in the state, the gross handle for February was still 15.6% higher than the same month last year. However, it fell short by 18.8% compared to the $465.8 million bet in January 2024.
Results Broadly Aligned with Expectations
The monthly handle figure, which includes $2.2 million in adjustments, paints a comprehensive picture of the sports betting activity in the state. Without these adjustments, the gross handle for February in Tennessee stood at $380.4 million. The gross handle witnessed a robust 16.2% year-on-year increase, indicating a healthy market. Nevertheless, on a month-on-month basis, it experienced an 18.6% decline.
The Privilege Tax for the month amounted to $7.0 million. While this figure reflects a 9.4% increase compared to February 2023, it is an 18.6% decrease from January’s $8.6 million. The Tennessee Sports Wagering Council (SWC), responsible for overseeing the licensing and regulation of online sports wagering, did not publish revenue data or provide a breakdown of each licensed operator.
While the month-on-month drop could be due to seasonal fluctuations, February’s Super Bowl should have boosted revenues compared to January. Next month’s results should reveal whether the result was a fluke or the start of a worrying trend. Tennessee’s sportsbook sector has shown no signs of significant issues, but industry insiders will closely monitor future updates.
Tennessee Remains a Leading Sportsbook Market
Tennessee entered the legal sports betting arena in November 2020, witnessing an influx of high-profile operators such as FanDuel, DraftKings, Caesars, and BetMGM. Over the subsequent years, the market has expanded, with recent additions like Fanatics, ESPN Bet, and Hard Rock, contributing to the state’s sports betting ecosystem and giving bettors diverse options.
Sportsbook taxes have significantly contributed to education and community-focused initiatives, aiming to offset some of the societal harm incurred by gambling. January’s contributions were sufficient to propel the state’s all-time figure above $200 million. Tennessee is the fifth state to achieve this milestone, following New York, Pennsylvania, New Jersey, and Illinois.
Despite the recent monthly decline, the Tennessee sports betting market continues to exhibit resilience and sustained growth, positioning itself as a leading player in the evolving landscape of legal sports wagering in the United States. Analysts expect the market to recalibrate in the coming months, driven by new operator launches, regulatory developments, and the ever-changing dynamics of sports betting enthusiasts in the state.
Deyan Dimitrov
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