The online sports betting market in the Volunteer State shows a lot of improvement in total handle year over year.
Despite a seasonal lull in online sports betting activity in Tennessee, year over year online sports betting handle in the state is up approximately $41 million (or 23.5 percent) since June 2021.
TN Online Sports Betting Total Bets (June 2022): $215.77 million
TN Online Sports Betting Total Bets (June 2021): $174.50 million
The nearly one-quarter year over year increase occurred in June 2022 even though the month represented the lowest amount of total legal sports bets made in Tennessee for the entire calendar year.
Tennessee is unique in that its licensed sportsbook apps are not directly tied to land-based casinos, and therefore offer online-only services – which represents a massive convenience for in-state sports bettors who would prefer not to travel in order to place a wager legally.
Year Over Year Sports Betting Revenue Decreases In June 2022
In the month of June 2022, Tennessee sportsbook apps recorded an Adjusted Gross Revenue of approximately $12.8 million. This compares unfavorably with numbers from a year ago, when legal online sportsbooks in TN reported $16.1 in gross profit off of a significantly smaller total handle amount.
In accordance with statewide laws that mandate tax payments based off of AGR, Tennessee collected only $2.56 million in online sports wagering tax in June 2022 – compared to $3.2 million collected in June 2021.
Legal iGaming In Tennessee Would Massively Boost State Tax Receipts
For most retail casinos and online gambling services, the vast majority of profit is generated from slot machine activity (as opposed to sports wagering, table games, or food & beverage services.
In some states where legal iGaming (aka online slot machines) are formally licensed (such as New Jersey), online revenue for iGaming outpaces that of online sports betting and/or iPoker by a factor of 10 or more.
However, states that have authorized (or are looking into licensing) online lottery products tend to be wary of legalizing iCasino slots due to the potential for cannibalization.
To date, there are only five states that have legalized online casino products in their respective jurisdictions: New Jersey, West Virginia, Michigan, Connecticut, and Pennsylvania.
If Tennessee were to license online casino games within the Volunteer State, it would undoubtedly collect much more in tax revenue off of those products as compared to online sports wagering. And the same can be said for the vast majority of statewide jurisdictions that have yet to approve iCasino.
Due to the “low margin” nature of most retail and online sports betting products (with a distinct exception for “parlay” wagers) the actual profit that sportsbook apps can expect to make off of sports betting hovers just over five percent. And that’s before overhead expenses such as licensure, payroll, and partnership agreements.
However, even if Tennessee decided to authorize online casino games within the state, it is highly unlikely that tax revenue from said vertical would ever come close to the record-setting performance of the Tennessee Lottery in Fiscal Year 2021 – which surpassed $2 billion.
Want To Get Started Making Sports Bets Online?
If you’re located in the state of Tennessee and are at least 21 years of age, you can qualify for a number of beginner perks by registering for a verified sportsbook app account through TNBets.
The sportsbook apps that we promote are all regulated within the state of Tennessee, and have convenient banking options for customers who wish to make deposits or withdrawals.
Sign-up today and get started by placing real money wagers on a wide variety of sports betting markets, including Major League Baseball as well as “futures” bets for NCAA and NFL football.