Tennessee Sports Betting Becomes $1.5bn Industry in 9 Months
Despite witnessing the slowest month in July, Tennessee sports betting has become a $1.5 billion market in the first nine months of its operation. The state launched its sports betting in Nov. 2020.
But even one of the most successful sports betting states could not escape the effects of July, the slowest month in US sports betting. The overall shrink in the US sports betting industry last month is partly due to the increased traveling and partly due to the lack of sporting events.
According to the numbers released Wednesday by the Tennessee Lottery Education, the state’s seven sportsbooks took in $144.6 million, down 17.2% from June’s $174.5 million.
The Tennessee sportsbooks returned $129.4 in the gross payouts to players and totaled $13.4 million in sports betting revenue for the month. The state government generated $2.6 million in taxes, down from $3.2 million raised a month before in June.
Why is July the Worst Month for US Sports Betting?
Though July was the worst month for Tennessee sports betting, it was not unexpected. July was also the last month (hopefully) before US sports betting emerges from its months-long slumber that starts in April – after the most eventful March Madness-filled month.
Another factor that slows down sports betting activity in July is due to increased tourism during the month. Despite the NBA Finals, MLB, 2020 Tokyo Olympics, and some PGA and LPGA golf tournaments options, the American tendency to travel during the month took precedence.
As a result, many legal sports betting states posted July handles as low as 20% less compared to a month prior. With a 17.2% decrease, Tennessee’s sports betting handle witnessed the same trend.
July has been traditionally the slowest month in the short US sports betting history since 2018. The best part is that with football season approaching, things will only recover from here.
Tennessee Remains an Exceptional Market
Despite its worst monthly performance, Volunteer State remains one of the most exceptional markets in the country. This May, Tennessee – the first online-only market of the United States – ranked fourth nationwide in terms of tax revenue.
Overall, Tennesseans have wagered nearly $1.56 billion since launch, allowing the state to raise $27 million in privilege tax since last November.
The state’s seven operators have posted an accumulated $135.9 million in AGR.
The Volunteer State went live in the middle of the NFL season last year. So the 2021 NFL will be the first full season the state residents can bet on.
In January, Tennessee sports betting had seen $211 million in handle – the highest monthly total for the state amid the peak of the NFL. The state made the record total with the help of four digital operators.
Tennessee sports betting has since swelled to seven sports betting operators, with three more to come later this month. With 10 operators to select from this year and full season, Tennesseans can help push the state’s sports betting industry to a new high.