According to the Sports Wagering Advisory Council (SWAC), Tennessee’s sports betting handle climbed to nearly $392.7 million in March. The figure is a:
- 6.1% year-over-year increase
- 20% monthly rise from $327.3 million in February
Tennessee has a 20% tax rate on operators’ GGR. Lawmakers in the state are currently considering changing how tax is calculated by taxing handle rather than revenue.
Tennessee sports betting revenue rises 92% year-over-year
The Tennessee Sports Wagering Advisory Council oversees the licensing and regulation of online gambling in Tennessee. According to the SWAC’s latest report, Tennessee sports betting revenue hit $43.7 million in March. Driven mainly by March Madness gambling, the figure is a 92.1% year-over-year increase and a 37.2% rise compared to February.
SWAC’s March 2023 report shows sports betting generated $8.8 million for the state, a 92.6% increase compared to $4.5 million collected in March 2022.
The Tennessee Sports Wagering Advisory Council does not report on individual sportsbook operators’ revenue numbers.
Tennessee sports betting tax bill progressing to Governor’s desk
As mentioned, lawmakers in Tennessee are currently deciding whether to change the tax structure.
If the sports betting tax bill (SB472) passes, Tennessee would no longer tax the amount of money that sportsbooks win from bettors, known as a hold. The state would, instead, evaluate the sportsbooks based on their betting handle, the amount of money gambled by players.
Under the current law, operators pay a 20% rate on their gross monthly revenue. As per the potential new law, the state would calculate those sums at a rate of 1.85% of the handle.
The bill is making its way through the House, making one final stop before going to Gov. Bill Lee’s desk for signature. If it passes, it will make Tennessee the only US jurisdiction to tax betting handle rather than revenue.
Tennessee was the first US online sports betting jurisdiction to legalize an online-only format, with no physical licensed sportsbooks in the state.