Tennessee Follows Pattern of February 2024 Sports Betting Declines

Tennessee sports betting apps, including some of our best sportsbooks, revealed mixed revenue results in the release of their February numbers. Sports betting figures in the Volunteer State were down month over month but showed improvement year over year.

The Tennessee Sports Wagering Council February report showed that despite a month-over-month dip in handle and revenue figures, Tennessee’s best sportsbooks have enjoyed a good start to 2024. Through the first two months of the year, overall sports betting activity in the Volunteer State is up a total of 14.4% from the same period last year as Tennessee sports betting apps saw plenty of action.

However, February represented the third straight month-over-month decline for the Tennessee sports betting scene, and the state’s handle was the lowest since September 2023.

$378.2 million February handle

Tennessee sports bettors spent a total of $378.2 million with state sportsbooks in February and surely took advantage of numerous Tennessee sportsbook promos. This figure represents an 18.8% month-over-month drop from $465.8 million in January, which was the third-best handle month ever for the Tennessee scene. It is, however, a 15.6% year-over-year increase from the $327.3 million in February 2023.

The state’s handle fell under the $400 million mark for the first time since September.

The February sports betting take in Tennessee took into account $2,155,742 in adjustments.

As mentioned, the first two months of 2024 have eclipsed the wagering activity of the sports betting handle from the first two months of 2023, as the $844 million was bet in Tennessee in January and February combined, 14.4% higher than through the first two months of 2023.

Tax revenue slips

Unlike most legal sports betting states in America, the Tennessee Sports Wagering Council (SWC) does not release any revenue data from state sportsbooks or winnings for state providers. 

Therefore, it is virtually impossible to determine how much individual operators benefit from the state handle on a monthly basis and what percentage of tax revenue comes from the overall handle.

In July, Tennessee switched from taxing gross gaming revenues (20%) like most states in favor of taxing 1.85% of the state's gross handle. It is a move that has been somewhat controversial and may have left some money on the table for needy tax coffers.

In the end, $6,980,317 in privilege tax was assessed in February, representing a $1.6 million decline from January, when the state experienced its third-best handle month. It is up $600K, or about a 9.4% year-over-year increase in tax contributions from Volunteer State sportsbooks.

However, year-to-date, state taxes paid by state providers are up about $1.9 million from the same two-month period last year. Tennessee sports betting apps have padded $15.6 million in taxes so far this year.