Tennessee generates $7m in sports gambling taxes on $384.2 million in wagers in April

Sports Betting

The Tennessee Sports Wagering Council reported sports betting handle totaling $384.2 million for April, continuing a strong start in the Volunteer State to begin 2024.

Handle was up 20.7% compared to February 2023, and the $844 million in accepted wagers the first two months of this year is 14.4% higher compared to last year.Tax revenue for February was less than $20,000 shy of $7 million, an increase of over $600,000 from last year and $1.6 million less than January. Tennessee is the only state with commercial sports betting that taxes handle instead of revenue, collecting a 1.85% levy on gross handle.

The SWC does not collect operator revenue data, making it impossible to determine if the state tax generated by the levy on handle compares favorably to the previous method of taxing adjusted gross revenue at 20%. The method of taxation changed at the start of Fiscal Year 2024 last July, which also did away with the much-derided 10% minimum hold for operators, and the state has claimed $58.5 million in tax revenue in its first eight months.