Increase in betting handle in Tennessee during April compared to previous year, yet a decrease compared to March's figures.
Tennessee's Sports Betting Market Sees Upward Trend Yet Falls Short of Last Month's Record
The Tennessee Sports Wagering Council has revealed that the state's sports betting handle for April 2025 reached $463.6 million, marking a 21.7% increase from the same period in the previous year. Despite this growth, the handle for April fell 15.5% short of the record $548.6 million seen in March.
The reported figure, which includes adjustments of $3 million, amounts to $466.5 million in total wagers. This significant rise in betting activity shows a continuous upward trend in Tennessee's sports betting market.
The council did not disclose details on the revenue generated or the performance of individual operators. However, it did confirm that preliminary collections from the privilege tax stood at $8.6 million for April.
Per the current tax structure, all licensed operators in Tennessee pay 1.85% of their total betting handle as tax, making the state unique in the U.S. market. This tax scheme is in contrast to other states, which generally base their taxes on revenue.
At present, there are 11 active online sports betting platforms operating in Tennessee. Prominent names among those include FanDuel, DraftKings, Fanatics, ESPN Bet, BetMGM, Caesars, Bally Bet, Hard Rock Bet, Betly, ZenSports, and Tennessee Action 24/7.
The Tennessee Sports Wagering Act, passed in April 2019, legalized sports betting only in an online format. With this digital-only approach, Tennessee joins an exclusive group of states without retail sportsbooks. The digital-only model has contributed to Tennessee's sports betting growth since the market's launch in November 2020.
In recent legislative changes, the governor of Tennessee has signed a budget that plans to increase the tax rate for online sports betting operators to 20%. However, it is important to note that this change will not alter the 1.85% handle-based tax rate that is currently in effect.
In light of Tennessee's ongoing digital-only sports betting market, it might be interesting for finance enthusiasts to explore the potential impact of the upcoming tax rate increase from 1.85% to 20% on sports-betting companies in the state, especially considering the current revenue generated and the competitive landscape among major operators like FanDuel, DraftKings, and others. On a different note, the significant rise in sports betting activity in Tennessee continues to position the state as a growing market in sports-betting solutions and sports-betting-related finance.
