Tennessee Sees $180 Million Wagered in December
Contents
Tennessee sports betting has been producing strong numbers since sports betting launched, and the same thing happened again in December. In the last month of 2020, the Volunteer state reported a betting handle of $180.9 million, up from November’s $131.4 million in its opening month.
Tennessee is producing these numbers with just four sports betting operators in the state. The demand for betting in the state has never been stronger, and it should continue to come in 2021. What also helps is how Tennessee has structured sports betting.
The state uses an online-only betting platform, the first state to do something of its kind. Before Tennessee, sports betting operators would have to partner with a casino before launching a sportsbook. The Volunteer State has changed the game for the U.S. betting industry on how states can operate sports betting.
Tennessee is creating a blueprint for other states to use if it wants to go all online, similar to what Virginia did during their launch last week.
The sports betting numbers coming out of Tennessee in the first two months have been awe-inspiring. Seeing close to $200 million wagered in the second month after launch shows how big Tennessee sports betting can be.
Tennessee by the Numbers
Tennessee saw a 37.7% increase from its November betting handle of $131.4 million to $180.9 million. Across the board, the betting handle, revenue, and taxes collected saw increases.
Revenue jumped from $13.9 million to $13.2 million for a modest 5% increase. The state collected $3.1 million in taxes, a jump from $2.4 million and a 22.6% increase.
Tennessee is encouraging for the state and states looking at using an online betting platform. With only four sportsbooks in Tennessee, there is a lot of room for the state’s industry to grow. There is no doubt that sports betting will have a ton of success in 2021.
What’s Next for Tennessee
More Growth.
DraftKings, FanDuel, BetMGM, and Tennessee Action are the four sportsbooks available in the Volunteer State. They have combined to bring in over $300 million in bets in the first two months of sports betting. New Jersey and Pennsylvania weren’t even capable of bringing in over $100 million in its first two months.
Tennessee is entering unprecedented numbers, and the proof could be in the online betting industry. With online sportsbooks able to launch right away, people across the state are finding it convenient to place bets instead of having to go to a casino to sign-up.
More sportsbooks should be entering Tennessee in 2021. The state has a high tax rate (20%) and also requires a hold of 10% for sportsbooks. This makes it harder for smaller sportsbooks to have the margins needed to be successful in Tennessee.
However, with success the state is seeing early on, it is only a matter of time until more sportsbooks start popping up in the Volunteer State. Tennessee is still a few years away from reaching market maturity, so the sky is limited with sports betting. Tennessee has the 16th largest population, which puts it right on par with Indiana, which saw $300 million wagered in December.
Tennessee is also a popular travel destination with Nashville and the Smokey Mountains. When people visit the state, they might want to place a few bets that weekend on one of the states betting services, which also adds to revenue.
Right now, there is no telling where Tennessee will peak, but the potential is already starting to show.
