Analysts assert that Tennessee sportsbooks still have “plenty of room for growth,” as college football and the NFL’s return ensured that the region soared to a September record.
Sportsbooks accepted $257.3m in bets in September, which is up 78.1 per cent from $144.5m, with bettors placing $8.6m in wagers per day over the 30 days compared to $4.7m over the 31 days of August.
This handle topped the state’s previous high of $211.3m wagered in January, and marked just the third time since Tennessee launched sports betting in November 2020 that betting surpassed $200m in a month.
Gross revenue also set a record as sportsbooks won $25.6m during the course of the month, which represents an increase of 93.9 per cent from $13.2m in August, topping the record $20.9m in revenue gained in January. This led to $16.6m in taxable revenue, which yielded $3.3m in tax revenue.
“As impressive as September was, the Tennessee sports betting market has not nearly reached its potential,” said Eric Ramsey, analyst for PlayUSA.
At 9.9 per cent in September, the combined hold for Tennessee’s sportsbooks still hovered near the 10 per cent threshold required by state regulations. However, that rule, among others, is still being reviewed by the Tennessee Sports Wagering Advisory Council.
Operators have been outspoken in their concern for the rule, which is unprecedented among US legal sports betting markets.
“It’s remarkable how well Tennessee has performed, and it has even more potential,” noted Nicole Russo, analyst for PlayTenn.
“Removing the hold requirement would spur competition among operators. And savvy customers who shop for the best odds and promotions would benefit most. That would help grow the market over the long term.”