Tennessee Earns Year-Over Year Sports Betting Increase in June

The Tennessee Sports Wagering Advisory Council (SWAC) Report for June was released on Tuesday. 

While Tennessee sports betting experienced month-over-month declines, there was good news on the year-over-year numbers front.

Tennessee is just the latest state to report a June slowdown in overall sports betting. July and August are traditionally even worse months for the U.S. legal sports betting scene. Sportsbooks in Tennessee and around the country will all be looking forward to September and the start of the NFL season.

Check out the top Tennessee sportsbook promos ahead of the upcoming football season.

June handle slide in Tennessee

Tennessee’s Sports Wagering Advisory Council reported $230.3 million in overall sports bets during June. That number represents a 17% decline from the $279.8 million wagered in May. It is just over half of the record $440.4 million taken in during December 2022 at the best sports betting apps.

Year-over-year handle figures point to a slightly more optimistic picture. $230.3 million is a 6.7% improvement from June 2022, when just $215.8 million was spent on sports betting in Tennessee.

As far as revenues go...

Tennessee had a bit of a rough month of June in terms of sports betting revenues and taxes collected for needy state and local coffers. Gross gaming revenues for Tennessee’s legal sports betting industry in June came in at $25.5 million, a 35% drop from the $37 million in profits reported in May.

A 2.2% dip in sportsbooks' hold rate in Tennessee could have something to do with the healthy drop in profits. The state’s best sportsbooks held 11.1% in June, as opposed to 13.3% in May.

Year-over-year, revenues for Tennessee sports betting app was up from just $15.86 million in June 2022, when the hold rate there was just 7.3%.

Adjusted gross income was $21.1 million in June, meaning that taxes paid by the Volunteer State providers was $4.6 million. It's a drop from the $7.1 million paid in May.

Taxes paid by Tennessee sports betting providers was just $2.56 million in June 2022.

Changes afoot

The Tennessee legal sports betting industry put new rules into play with regard to their legal sports betting platform, starting July 1. The controversial requirement for operators to hold at least 10% is gone, meaning sportsbooks are a little more free and that we could see more competitive lines for Volunteer State bettors.

The way that sports betting is taxed in the state also changed. Operators will now be taxed on their overall handle, or the amount of bets they take in. Previously, Tennessee providers were taxed 20% on adjusted revenue. On July 1, they started being taxed 1.85% on their monthly handles.

The Tennessee legal sports betting industry isn't free for providers anymore either. Starting July 1, sports betting sites and retail providers will, for the first time, be required to pay between $30,000 and $150,000 for a new license fee or a renewal fee if they are already part of the Volunteer State sports betting scene.