Tennessee had a good month in September. The state managed to clock in a total of $336.9 million in sports wagers, a good total betting handle all things considered, and the sixth-best the Volunteer State has had to date. The state’s tax revenue amounted to $8.7 million, the Sports Wagering Advisory Council reported.
Tennessee Betting Tax Beats All Expectations
This is the biggest tax amount on record that the state has been able to collect since sports betting launched off to a shaky start in November 2020. The previous tax amount to set a record was registered in November 2021 when Tennessee generated $5.9 million in tax from sports wagering.
The present results have surpassed all expectations and given hopes that the months ahead will remain just as action-packed. There is definitely plenty of events to explore down the road with a number of fantastic events, including the NBA, NFL, and the NHL running at full throttle. Interestingly, the total amount wagered, $336.9 million, wasn’t actually the largest on record.
The state generated its biggest total betting handle in a single month back in January 2022 when gamblers wagered $386 million in total. Tennessee presently taxes gambling revenue at 20%, but it bases the tax rate on the net operator revenue as opposed to the gross receipts. Out of this amount, 80% is forward towards education and 15% is divvied between local governments. Another 5% is then earmarked for mental health programs in the state.
The uptick in sports gambling tax may have to do with the change in how sportsbooks calculate their net revenue after a change was enacted in mid-2022. Meanwhile, state regulators are due to meet on October 24 and discuss the license renewals of several companies, including BetMGM, DraftKings, Action 24/7 and FanDuel. The state has a total of 11 operators, with BallyBet and Fubo Sportsbook both approved but not yet launching.
In the meantime, Fubo Sportsbook announced in a quick financial update that it is discontinuing its sportsbook initiative as it lacked a way of making this project generate shareholder value.