The summer is here and Tennessee bettors don’t appear to be slowing down. If the NBA playoffs are keeping sportsbooks popular, then May could be the last good month for a while. If not, then the Volunteer State is a great place for operators.
Tennessee’s Sports Wagering Advisory Council (SWAC) reported that the state accepted $381.8 million in bets for May, almost the same as its April handle of $384.2 million.
States like Iowa, Maryland, and North Carolina (to name a few) saw less action in May, compared to April, so Tennessee’s nearly identical handle is certainly good news for sportsbooks and state coffers.
Sportsbook deductions fell to $2.5 million, from $3.3 million a month earlier, which also helped the state keep their tax bill nearly the same as April. Operators paid $7 million last month.
May 2023 vs. May 2024
When looking at May 2023, the downside to the state’s decision to tax sportsbooks on the total money wagered (instead of on their revenue) becomes more evident. I would like to give the lawmakers credit, however, the past few months demonstrated that the tax law has shown to earn the state more money than its neighbors. But this month showed that when operators make money, the state’s taxable ceiling is higher.
Last year, the state made $7.1 million off from $279.7 million in Tennessee sports betting handle, more than $100 million less than May 2024. To the operator’s credit, back then, their hold was a strong 13.3%, well above the average across legal betting states.
