CABETS: Tennessee Sets a New Record in the Monthly Handle and Revenue in December as the November Highs Were Short-Lived
Tennessee is one of the few states that only allows mobile sports betting within its borders. Regardless of not having retail, the Volunteer State is one of the states which set a record in December to close out 2022 on a positive note.
Tennessee Continues to Be a Solid Contributor
Online sportsbooks combined to register $440.4 million in wagers for the month, which topped the high that was posted in November that showcased $439.5 million in bets. This is the third consecutive month where the handle surpassed the $400 million mark.
The revenue department witnessed the same trend as the monthly handle, as the previous high in November was short-lived. The 11 mobile sportsbooks that conduct business in the state handled approximately $49.2 million in gross revenue for the month.
It notes a 4.1 percent increase from November’s $47.2 million because of the 11.2 percent win rate. To put it in context, the average hold rate for the industry is set at 7.2 percent, as Tennessee was exactly four points above the threshold.
With regard to sports betting, the state was able to levy $47 million of the total amount, which was the highest in its recorded history, which oversaw 26 months of operation. The state received $9.4 million in tax recipes for the month, which is the highest total outside the “Big 4” which includes jurisdictions like New York, New Jersey, Illinois, and Pennsylvania.
Sports Betting is Second Nature in the Volunteer State
Despite not having any retail locations or casinos in that matter, Tennessee is making a case as to why mobile sports betting is much more important than retail locations. Compared to 2021, the overall handle skyrocketed over 40 percent in 2022.
The average win rate was situated just below the 10 percent mark. The stronghold rate would contribute to a solid rise in gross revenue by 58.5 percent from the previous year, which translated to $379.4 million in that department. In addition, the adjusted revenue numbers moved 72.1 percent higher as well.
2022 Was a Good Year in Gross Revenue
In 2022, operators reported $39.3 million in deductions, a 5.9 percent decline over last year. In the calendar year, the state taxed about 90 percent of gross revenue reported by operators. The house won $239.4 million in 2021, which accounted for 82.5 percent of the total.
The Volunteer State became just one of seven states to surpass the $100 million tax revenue mark in the post-PASPA era by November. In contrast to other states, Tennessee doesn’t include handle and revenue numbers that are accumulated by the bookmakers and individual sports categories.
North Carolina is one of the states that will certainly bring up sports betting in their upcoming legislative session, as sports wagering is only legal on the two tribal casino lands that are located in the western part of the state. Due to its proximity, many bettors have crossed state lines to place online wagers in Tennessee.