Sports betting in the United States continues to be a growing industry. New states enter the market on a regular basis as legislation is approved and with the help of new operators launching on a consistent basis, revenues and handle continue to increase. In Tennessee, sports betting is a booming business. The state offers only online betting, with no brick-and-mortar facilities, but that hasn’t stopped it from dominating the industry.
Just this week, it was revealed that the industry has already generated over $1 billion in sports betting handle. The Tennessee Education Lottery has provided the latest revenue numbers from April, which helped the state reach this record number. Tennessee is the first state in the US to see over $1 billion in bets placed within the first six months of operation.
In April, sportsbooks were able to create a gross handle of just over $172 million. From that amount, a $2.8 million privilege tax was paid. This equals around $14 million in adjusted gross earnings for operators.
The April bet amount is lower than March, by just over 13%. The previous month was a big draw for sports bettors due to the NCAA March Madness tournaments. In March, over $205 million in bets were placed.
April saw a drop in bets within several markets and it is expected that the summer months will be a bit slow for betting. Right now, the industry has only regular-season baseball and basketball to pull in wagers.
The online sports betting industry in Tennessee launched back in November. Since that time, over $1 billion bets have been placed in the state. Overall, $18.5 million in taxes have been paid to the state. This means that Tennessee was able to hit the $1 billion handle in less than six months.
The market is huge in Tennessee. The demand is there, especially since many neighboring states do not offer sports betting. Players from such states as Alabama can easily cross the border and log in to a mobile app to place a bet.
And the state has even more apps coming in the future. There are currently seven operators offering sports betting in the state. Four more applications for services are currently pending. Even more brands have shown interest, so Tennessee could easily shoot past other states as a top earner in the next few months are more operators are approved.
It is expected that twice as many operators will be offering services in Tennessee in the future.