The neck and neck competition between FanDuel and BetMGM dominated the Tennessee sports betting scene for May, which saw its lowest handle since launch. Only a few dollars decided the winner.
According to the numbers released Wednesday by Tennessee Education Lottery, the state’s sportsbooks took in $160.9 million in May, representing a 6.8% decline from April’s $172.4 million. April’s numbers had also reflected a downward trend following two most eventful months of the year.
Tennessee sports betting had reported $205.9 million in handle in March, thanks to the NCAA Men’s Basketball Tournament – the biggest event of the sporting calendar.
However, April and May were destined to be slow months, following a general trend in the US sports betting amid the late spring slump.
May also witnessed Volunteer State’s lowest betting figures since it launched sports betting last November. But the FanDuel-BetMGM competition took all the limelight away from the underperforming aspects of Tennessee sports betting May report.
FanDuel-BetMGM Neck and Neck
FanDuel and BetMGM continue a nail-biting competition for market leadership in Tennessee sports betting. Only a few dollars decided who would be crowned the winner in May.
FanDuel ultimately continued its reign, with bettors just wagered $127 more at the New York-based operator than its nearest rival, BetMGM. Both FanDuel and BetMGM reported a handle of nearly $57 million, each.
DraftKings consoled itself with the third position again as the Boston-based company reported nearly $40 million in handle.
While the top three leaders claimed – as usual – the lion’s share of Tennessee sports betting, the remaining four sportsbooks picked up the remaining chunks of the pie.
Other Four Sportsbooks
Tennessee sports betting initially launched in November with four operators – FanDuel, DraftKings, BetMGM, and Action 24/7. In the coming months, the market swelled to seven operators, with William Hill, TwinSpires, and WynnBET entering the booming market.
Of the operators that launched last November, only Action 24/7 – a local sportsbook – lagged behind by reporting $1.5 million in total bets in May.
William Hill reported $4.8 million, while TwinSpires and WynnBET could generate a little more than $700,000 each in bets.
Out of the total May handle, $145.5 million went back to the players in winnings – called gross payouts. Operators reported $13.7 million in adjusted gross income.
The state generated $2.7 million in 20% monthly privilege tax, compared to $2.8 million recorded a month prior.
In April, the gross payout was $156.9 million, and operators had generated $14.4 million in adjusted gross income. In May, the hold rate was 8.5%, a slight increase from April’s 8.4% hold.
Despite May Slump, Tennessee Remains An Exceptional Market
Tennessee has grown to be one of the most formidable US sports betting markets in less than a year. It had a great inaugural month when sports betting kicked off with a $131.4 million handle last November.
There had been no turning back since. In April, the Volunteer State became the quickest jurisdiction to top $1 billion in handle. So far, Tennessee bettors have wagered more than $1.2 billion between November and May.
May slump did not come as a surprise as the month tends to be one of the most non-eventful phases of the year with fewer sporting events taking place. Similar declines have been reported across the nation, and the slump is likely to persist until fall brings the NFL.
In many states, like Tennessee, football season attracts the greatest number of fans, enthusiasts – including bettors.