According to the latest report by the Tennessee Sports Wagering Council (SWAC), Tennessee sports betting activity shows a monthly decrease. This is not unusual for this time of the year.
However, sports betting numbers are expected to improve after the 2023 college football and NFL seasons start.
As of July 1, Tennessee has become the only US state taxing sportsbooks according to their gross wagers (betting handle). Other legal US gambling states tax sportsbooks according to their adjusted gross income (AGI) or gross gaming revenue.
During the first month under the new tax structure, Tennessee sportsbooks collected $3.9 million in gambling taxes.
Tennessee sports betting taxes in July drop monthly, increase yearly
Under the new tax structure, throughout July, Tennessee sportsbooks compiled $3,951,411 in Privilege Tax Assessed. The number is a 14.76% monthly drop from June 2023’s $4,635,761.
At the same time, the figure represents a 7.70% year-over-year improvement from July 2022’s $3,668,804.
Sports betting handle drops again in July
According to the latest report from the SWAC, Tennessee sportsbooks generated $215.49 million in betting handle in July. Here’s a bigger picture of July sports betting numbers:
- Gross Wagers $ 215,489,157
- Adjustments $ 1,375,103
- Gross Handle $ 214,114,055
- Privilege Tax Assessed $ 3,951,411
The betting handle figure is a 6.45% monthly decrease from the $230.34 million that the operators in the state took in during June. That number was also down from $279.8 million made in May and $318.4 million from April.
Back in March, the figure reached nearly $392.7 million.
The new tax structure for Tennessee sports betting started in July
The new system began on July 1, and Tennessee made history with its new law. So, from July 1, Tennessee sportsbooks pay a 2% tax on gross wagers (handle).
Before the new change occurred, Tennessee sports betting operators paid 20% taxes on adjusted gross income.
Tennessee lawmakers previously issued a $25,000 fine to sportsbooks that did not hit the requested 10% hold, making it difficult for even the best-performing operators in the state. And as most Tennessee sportsbooks had difficulty exceeding the 10% profit mark, the state decided to modify the rules.
New operators would still have to pay the$750,000 licensing fee. But their annual renewal fee could cost less depending on how many bets they take.