Tennessee’s sportsbooks set a new revenue record in the month of November with a figure of nearly $40m, according to PlayTenn, which tracks the Tennessee gaming market.
The Volunteer State has now posted three consecutive months of record revenue, a streak that was extended in November despite the month having fewer weekends of football, just four compared to October’s five.
Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayTenn.com, stated: “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.
“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.”
According to data from the Tennessee Education Lottery and Sports Wagering Advisory Council, wagering declined to $365.7m in November (October: $375.3m), but average volume increased to $12.2m per day over the 30 days ($12.1m per day over the 31 days of October). November’s bets were up 178% year-over-year as well (November 2020: $131.4m).
The volume increase saw gross revenue grow by 179% to $36.9m during the month (November 2020: $13.2m), beating September’s record of $25.6m. Promotions helped reduce taxable revenue to a record $29.6m, yielding $5.9m in tax revenue, another record.
Tennessee’s tax structure, which imposes a 20% rate on net operator revenue, has been among the state’s best successes. Since its November 2020 launch, sports betting has produced $242.4m in gross revenue, injecting $41.4m into state coffers.
Alec Cunningham, an analyst for PlayTenn.com, commented: “Most states that have legalized and regulated sports betting have undoubtedly done so with additional tax revenue as the main carrot.
“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 Volunteer State’s sportsbooks have yielded $85.8m in gross revenue on $998.3bn in wagers over the last three months, which has generated $12.6m in tax revenue for the state. Football has been the main driving force behind this growth, but the first full month of the NBA action helped sportsbooks mitigate the fewer weekends of football in November and continue on this strong path.
Cunningham added: “Football draws more in wagers per game, but the sheer volume of NBA and college games makes basketball a force in and of itself. The convergence of basketball and football will certainly keep sportsbooks busy well into the new year.”
