Tennessee sports betting operators collectively saw their revenues grow significantly at the beginning of 2023 as the state’s total adjusted gross income increased by nearly 25% in January.
Data published by the Tennessee Sports Wagering Advisory Council revealed Tennessee’s sportsbooks handled $410.7m, up 6.4% year-over-year as the market continues to grow annually.
However, this marked a 6.7% decline from December 2022, which may have been boosted by the FIFA World Cup that took place throughout November and December, whilst the main NFL season came to a close in January.
The hold rate for Tennessee’s sportsbooks was a relatively average 8.8% in January 2023, once again an improvement on an annual basis where the comparison was 7.5%. But it also remains 1.8 percentage points lower than in December 2022, where the hold rate was 10.6%.
As a result, the adjusted gross income (AGI) for Tennessee sportsbooks in January was $36.3m, up 24.7% YoY as Tennessee’s sports betting market demonstrates strong growth.
However, this is $10m down from December 2022 as the typical December to January dip in revenue plays out.
On an annual basis, Tennessee’s sports betting market is displaying strong growth and, with Super Bowl numbers yet to be posted and March Madness betting still to go in Q1, the market could see further growth in the months ahead.
