Tennessee’s sports betting scene saw a notable uptick in May 2026, with bettors placing a total of $443,038,330 in wagers, marking a 0.5% increase from the same month last year.

Operators reported an adjusted gross revenue rise of 1.5%, amounting to $40,981,045, with a hold rate of 9.25%. What sets Tennessee apart from every other state is its unique tax structure: instead of taxing revenue, the state imposes a flat tax of 1.85% on the total handle.

This means that for May, regardless of whether sportsbooks performed well or faced challenges, the privilege tax tallied up to approximately $8.1 million. Tennessee boasts the only online-only sports betting market in the nation, devoid of casinos and retail locations, adhering to a tax system that focuses on volume instead of results.

These figures were sourced from the Tennessee Sports Wagering Council. In a distinctive move, Tennessee stands as the sole U.S. state that bases its sports betting tax on handle rather than revenue. Since July 1, 2023, following the passage of SB 475, operators have been liable for a 1.85% tax on total wagers. This tax calculation is straightforward: simply take the total handle, multiply it by 0.0185, and that yields the tax owed.

For May, the $443 million in bets translates to about $8.1 million for state coffers, a figure that would remain consistent even with slight variations in the hold percentage.