Daily betting volume rises even as monthly handle dips slightly from October, but profitable month creates $6 million in taxes, according to PlayTenn analysts
(LAS VEGAS) — Tennessee’s sportsbooks posted their best month ever in November, setting a fresh record for revenue with nearly $40 million while the average daily volume of sports betting ticked up from October’s record. The Volunteer State has now posted three consecutive months of record revenue, a streak that was extended in November even as the inventory of football games tapered off, according to PlayTenn, which tracks the Tennessee gaming market.
“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,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayTenn.com. “Sportsbooks continue to expand their reach to new customers, and bettors are becoming increasingly comfortable with more diverse forms of betting. It is difficult to imagine a better season than the one that Tennessee sportsbooks have enjoyed.”
Wagering actually fell to $365.7 million in bets in November, falling short of the record $375.3 million in bets reached in October, according to data acquired by PlayTenn on Tuesday from the Tennessee Education Lottery and Sports Wagering Advisory Council. But average volume grew to $12.2 million per day over the 30 days of November from $12.1 million per day over the 31 days of October.
Year-over-year, November’s bets were up 178% from the $131.4 million in bets that sportsbooks took in November 2020, the first month of sports betting in Tennessee.
The increase in volume led to a record win for sportsbooks, too. Gross revenue grew 179% to $36.9 million in November from $13.2 million in November 2020, shattering September’s record of $25.6 million along the way.
Promotions helped whittle taxable revenue to $29.6 million, also a record, which yielded a record-breaking $5.9 million in tax revenue.
Tennessee’s tax structure, which levies a 20% rate on net operator revenue, has been among the state’s best successes. Sports betting has produced $242.4 million in gross revenue since launching in November 2020, injecting $41.4 million into state coffers. Compare that to neighboring Virginia, where $254.4 million in gross revenue has produced just $18.6 million in tax revenue for the state.
“Most states that have legalized and regulated sports betting have undoubtedly done so with additional tax revenue as the main carrot,” said Alec Cunningham, an analyst for PlayTenn.com. “Tennessee regulators made some missteps during their first year on the job, but ensuring that the state gets a fair share has not been one of them. They have set up a relatively balanced structure that has created a dependable revenue source without hamstringing operators.”
The last three months have been especially lucrative for Tennessee and the U.S. as a whole. Over the last three months, sportsbooks have produced $85.8 million in gross revenue on $998.3 billion in wagers, which has yielded $12.6 million in tax revenue for the state.
Football has been the driving force in the recent growth spurt, of course. But the first full month of the NBA was key in helping sportsbooks keep up their torrid pace in November, which had four weekends of football games compared with five in October.
“Football draws more in wagers per game, but the sheer volume of NBA and college games makes basketball a force in and of itself,” Cunningham said. “The convergence of basketball and football will certainly keep sportsbooks busy well into the new year.”
For operator data and more information on regulated sports betting in Tennessee, visit PlayTenn.com/revenue.
Contact: Zack Hall, Catena Media, [email protected]