Published: August 17, 2022

Tennessee Sports Betting Operators Enjoy Strong July

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.

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