Tennessee has documented its first month-on-month decline, continuing a national trend following a shortened month that featured only one NFL game, albeit that being the Super Bowl showpiece.
As William Hill and TwinSpires joined DraftKings, BetMGM, and FanDuel, who have fiercely competed for market share since launch, the Tennessee Education Lottery announced that bettors placed $176.3m in wagers.
That figure is down 16.6 per cent from $211.3m in January, and also represents the smallest handle since the market’s first month in November.
Those wagers produced $13m in adjusted gross income, which is a drop of 40.4 per cent from the record $21.8m set one month earlier. February’s revenue injected $2.6m in state taxes.
The state’s profitable February was due in large part to the Super Bowl, which produced a win of nearly $3m on more than $15m in wagering, according to TEL data.
“Even as quickly as Tennessee has grown, this is a reminder that the state is still very much a part of the same sports betting ecosystem that dictates the rest of the US markets,” noted Nicole Russo, analyst for PlayTenn.com.
“Sportsbooks have really done a great job of engaging a sports-crazy population, though. Tennessee’s market has some challenges, but an enthusiastic customer base has a way of overcoming most anything.”
The Volunteer State set a record in November for the highest handle for a market in its first full month of online sports betting, but Michigan broke that record in February with $301.9m.
But February’s results still represent an extension of Tennessee’s historic start, pushing the state’s lifetime handle to $699.9m since launching in November, more than any other US market through its first four months.
“Even with increased competition from neighboring Virginia, Tennessee still could close the gap with far more mature markets like Indiana,” added Jessica Welman, analyst for PlayTenn.com.
“Considering how quickly bettors have embraced online sports betting, there is plenty of reason to believe that the state’s operators will be able to sustain growth even as their early advantages begin to dissipate.”