Volunteer State keeps up with nationwide trend as revenues rise despite lighter handle
Tennessee became the 10th state in the post-PASPA era to surpass $5 billion in sports wagering handle after the state’s Sports Wagering Advisory Council reported Monday that nearly $182.8 million worth of bets were placed in July.
The Volunteer State also cleared $2 billion in handle for the year, the 11th state to do so, as year-over-year handle has increased 62.3% compared to the first seven months of 2021. Though month-over-month handle dipped 15.3% from June’s total of $215.8 million, the figure was an improvement of 26.4% versus last July.
The state’s 13 mobile and online operators continued the national trend of July being a strong month for the house. Their 9.9% win rate resulted in $18.2 million, an increase of 14.6% compared to June. Despite having a high hold nearly three full percentage points above the 7% industry standard, Tennessee currently ranks eighth of 10 states that have published revenue reports for the month.
The adjusted revenue was actually higher than gross revenue at $18.3 million, with the bump even after promotions and deductions helping operators post their first double-digit win AGR win rate in 21 months of activity. The state claimed $3.7 million in tax receipts, lifting its total for the year over $29 million.
The Sports Wagering Advisory Council does not disclose handle and revenue figures by either operator or sport category, but the top-line numbers do show large year-over-year growth thanks to the surge in handle which has more than offset a lower operator win rate. The $172.2 million in gross revenue is 48.2% higher compared to the first seven months of last year despite an 8.5% win rate that is more than three-quarters of a percentage point lower.
That gap is nearly 1.5 percentage points when it comes to adjusted revenue, with the 2022 AGR win rate just 7.2%, but the $145.2 million amassed by the house is running 35% ahead of last year’s pace. That has contributed to a year-over-year increase of $7.5 million in tax revenue, with Tennessee on the verge of surpassing $75 million in tax receipts generated since launch in November 2020.