Tennessee became the ninth state to clear $2 billion in sports betting handle in the post-PASPA era, wrapping up its first 12 months of action with a record $375.3 million wagered in October, according to the state’s Education Lottery Corporation.
The Volunteer State furthered the expected trend of record-setting handles across jurisdictions with legalized sports wagering, becoming the 10th state among the first 11 to post an all-time monthly high for handle in October. It also joined New Jersey, Nevada, Pennsylvania, Illinois, Indiana, Colorado, Michigan, and Iowa among states to clear $2 billion.
The two extra weekend days in October, coupled with the popularity of NFL betting and further enhanced by the Tennessee Titans leading the AFC South, contributed to a 45.9% increase in handle compared to September’s short-lived record of $257.3 million. Bettors, though, posted their best monthly performance to date in preventing state’s seven operators from topping September’s revenue handle. Gross gaming revenue was $22.9 million, an 11.8% dip compared from $25.6 million in September. Operators’ 6.1% win rate was the lowest in the 12 months of accepting wagers in Tennessee and also the first in six months to dip below 9%.
The adjusted revenue of $17.2 million also ranked second overall, trailing only the $20.9 million generated in January, as promotional revenue dipped from $9 million to approximately $5.7 million. The 4.58% hold on adjusted revenue is also an all-time low and well below the overall AGR win rate of 7.59%. Tennessee did collect more than $3.4 million in taxes, lifting the total for the year to more than $30.3 million and close to $35.8 million overall.
A speedy sprint to $2 billion handle
Top 10 #SportsBetting Handle since May 2018 (Oct in CAPS):
1 #NEWJERSEY: $20.295B
2 #Nevada: $17.57B
3 #PENNSYLVANIA: $10.129B
4 #Illinois: $6.49B
5 #INDIANA: $5.107B
6 #Colorado: $3.6B
7 #Michigan: $2.58B
8 #TENNESSEE: $2.335B
9 #IOWA: $2.275B
10 #Virginia: $1.965B
— Chris Altruda (@AlTruda73) November 17, 2021
When Tennessee launched as an all-digital platform statewide, it was the first in the nation to do so, aiding its ascent to a Top 10 national market. The Volunteer State is the fifth-fastest to $2 billion in handle, trailing only gaming powerhouses Nevada (six months) and New Jersey (10) and peers Colorado and Illinois (both 11).
Conducting business for the first two months of the NFL season has drastically altered Tennessee’s trajectory, as September and October represent 27.1% of the state’s overall handle since launch and 23.7% of the gross gaming revenue.