Tennessee Sportsbooks Experience Month-Over-Month Handle Drop

The theme of sports betting activity increases among America's competing jurisdictions in December has been well-documented. However, Tennessee bucked that trend last month with a drop in month-over-month handle as our best sportsbooks didn't perform as well in the Volunteer State as many others.

According to the Tennessee Sports Wagering Advisory Council (SWAC) December report, eight Tennessee sports betting apps saw month-over-month declines in overall handle and sportsbook revenues. The good news is that wagering activity and sportsbook profits were up year-over-year.

$495 million December handle

Tennessee sports betting is a mobile-only platform that produced $495 million in wagers in December, slipping under the $500 million mark it reached the month before. November represented the only month that Tennessee sportsbooks have eclipsed $500 million in wagers and goes into 2024 as the highest handle ever since the state’s platform launched in November 2020.

Despite the dip from November, December's totals represent the second-highest sports betting handle ever for the Tennessee legal sports betting scene as residents took advantage of Tennessee sportsbook promos.

December's handle is a $22 million or 4.2% drop from the record $517.1 million reported in November. However, it does represent a 12.4%, or $55 million year-over-year increase from the $440.45 million reported in December 2022.

Revenues reveal mixed result

Like Tennessee's legal sports betting handle, revenues for Tennessee sports betting sites experienced a month-over-month decline but a year-over-year increase. 

Sportsbook revenues for Tennessee providers reached $49.5 million in December, the second-best total in state history. That said, December's revenue totals are about $2.2 million less than November's record month. December revenue totals are about $325K higher than December 2022's figures.

Tennessee sportsbooks contributed $9.1 million in taxes off of December's revenues. It was the third-highest total lifetime for the Tennessee sports betting industry. Only November's more than $9.5 million and December 2022's $9.4 million were better. Of note, December 2022 had a 12.4% lower handle than December 2023.

In December, Tennessee was in its fifth month of a new taxation system for state sportsbooks. Regulators now collect a 1.85% tax rate on gross handle rather than 20% on adjusted gross income, which had been in place from November 2022 until July 2023. 

Sports betting taxes distribute 80% of their monthly haul to the Tennessee Lottery for Education Fund, 15% goes to the state's General Fund, and 5% has been earmarked for Tennessee's Department of Mental Health.

Tennessee sportsbooks held 10% in December 2023, 11.2% in December 2022, and 10% in November 2023.