After PASPA was struck down by the Supreme Court in 2018, Tennessee legalized sports betting in April 2019. However, it was quite some time until the launch of the activity that happened in November 2020. One year after the launch, November 2021 proved to be another record-breaking month for sportsbooks in the state that hit nearly $40 million in gross revenue.
Sportsbooks in Tennessee Hit Nearly $40M in Gross Revenue in November 2021
According to data from the Tennessee Education Lottery and Sports Wagering Advisory Council released by PlayTenn, the sportsbooks’ gross revenue in the state hit $36.9 million in November 2021. This marked a significant 179% increase from the $13.2 million gross revenue in November 2020, the debut month for sports betting in Tennessee.
Sports fans in the state have wagered a total of $365.7 million in November 2021. This marked a slight decrease from the $375.3 million wagered in October. However, the average volume grew to $12.2 million per day for the 30 days in November. This marked an increase from the 12.1 million per day recorded during October.
Considering Tennessee’s 20% tax rate on net operator revenue, November brought a record-breaking $5.9 million to the state’s coffers. Moreover, since the launch of the activity, some $242.4 million in gross revenue has been taxed, resulting in $41.4 million in tax proceeds. In contrast, nearby Virginia has seen $254.4 million in gross revenue, but the lower tax rate has brought only $18.6 million in tax revenue for the state.
Tennessee Sportsbooks Enjoy Another Strong Month
Alec Cunningham, an analyst for PlayTenn.com said in a recent statement that most US states that have legalized and regulated sports betting have done so to raise tax revenue. He outlined that although the regulator in Tennessee has had “some missteps,” they have ensured that the state receives a fair share of tax revenue. Cunningham added that the regulator in Tennessee has “set up a relatively balanced structure that has created a dependable revenue source without hamstringing operators.”
“Even with one fewer football weekend than in October, wagering grew, a sign that the wave of action over the last three months is sustainable beyond football season.”Eric Ramsey, an analyst at the PlayUSA.com Network
Eric Ramsey, PlayUSA.com Network’s analyst, added that wagering in November grew despite the month having one fewer football weekend than October. According to him, this definitively proves that wagering can continue growing even beyond the football season. Ramsey revealed that sportsbooks in Tennessee continue to reach new customers. On the other hand, he acknowledged that more “bettors are becoming increasingly comfortable with more diverse forms of betting.” In conclusion, Ramsey said that undoubtedly, this was a good season for sportsbooks in Tennessee.