With the NFL season over, March Madness is the final event that brings in tons of wagers. The rebound came to Tennessee who reported numbers similar to January, a huge betting month across the U.S.
Tennessee’s Sports Wagering Advisory Council (SWAC) reported that the Volunteer State accepted $473.5 million in bets last month, a 24.5% monthly increase from February’s $380.3 million in tickets.
Sportsbooks reduced their deductions from $2.1 million to $1.6 million, giving the state $8.7 million in taxes. March’s tax bill was not only better than February, but January, too.
Compared to this time last year, March 2024 saw $80 million more in wagers, but the tax bill was unchanged, meaning that the state legislature’s decision to tax operators on handle (instead of revenue) most likely hurt their haul last month.
Tennessee tax can be an asset … sometimes
While we wait for Kentucky’s numbers, neighboring Virginia shows that action has fallen in the Volunteer State but state coffers are less affected.
From January to February, Tennessee’s sports betting handle fell 18.6% while Virginia was just 16.5%. But in February, the public was all over the Kansas City Chiefs who won the Super Bowl, cutting Virginia’s revenue by a third. Tennessee on the other hand was not hurt.
Tennessee’s unique tax rate, which is 2% of all wagers taken in, instead of the industry standard or a percentage of net revenue, is proving to be a stable form of money for the state. Tennessee came away with just under $7 million while Virginia made just $6.3 million despite taking in more than $150 million more in bets.
Tennessee’s tax rate appears to be effective in months where bettors improve their winnings, but when the operators win big they are left behind.
