Tennessee Sportsbooks Start Off on the Right Foot by Shattering Previous Records
According to the Tennessee Education Lottery (TEL), the state’s sports betting market surpassed most optimistic expectations in wagering taxes and betting revenue for the month of November. The regulatory body posted a record first-month in which sportsbooks posted triple-digit revenue figures, shattering a previous record set by Indiana in September 2019.
Rebecca Paul Hargrove, the President and CEO of TEL, said in the press release, “Our first month of sports betting in the state arrives at a unique time, not just for Tennessee, but the world as a whole.”
Breaking Old Records
According to official figures, sportsbooks in the state generated over $131.4 million in wager during November. And the excellent first-month record should not be excluded from the equation. In comparison, the current largest market in the nation, New Jersey, did not surpass record-breaking figures until the fourth month.
The numbers aren’t as bad as you think, as Pennsylvania needed eleven months to top that. Experts believe Tennessee had a few favorable conditions leading to the impressive results, and the NFL and college football resuming in full force played a massive role in achieving the figures.
Furthermore, Tennessee is the only state to offer mobile sports betting, which proved to be particularly helpful at a time football season was underway. In comparison, neighboring Mississippi and Arkansas also offer sports betting but are yet to legalize online sportsbooks. And finally, the Tennessee Titans have had an impressive year, further prompting residents to place a few quick bets on the home team.
Looking at the Road Ahead
The first real test for the Tennessee sports betting market will be in January when neighboring Virginia launched its first online sportsbook. Hence, the cautious statement from the TEL President and CEO.
“The figures from November are indicative and include adjustments. As the nascent industry in the state evolves, we will continue working with new license applicants and registrants to support a competitive and responsible sports wagering platform,” Rebecca added.
The flying start once again highlighted the advantages of having additional options on registration and placing bets. Although lacking in detail regarding each of the four sportsbooks in the state, the November report revealed the payout and taxes paid to the state aside from the handle.
Sports wagering platforms returned $118.2 million to the bettors, which means roughly 10% profit margins in the first month. The industry generated $2.4 million in taxes, 15% of which is reserved for the local government, 5% of funding used to treat gambling addicts, and the remaining 80% is dedicated to improving the education and lottery system.
Apart from BetMGM, DraftKings, Action 24/7, and FanDuel, which currently operate in the state, BetAmerica, ZenSports, WynnBET, and William Hill are stated to apply for a license soon. The new sportsbooks could open before the end of 2021 as a special meeting is scheduled for January 6.