Tennessee’s sports betting market witnessed a decline in the handle for June, reaching $230.3 million, marking a 20% decrease compared to May’s figures. Despite the sequential dip, the state continues to demonstrate resilience, showing a 6.7% increase from June 2022.
Handle Comparison:
The sports betting handle in June, amounting to $230.3 million, reflects a notable decrease from the previous month’s figure of $279.7 million. However, the year-on-year growth underscores the sustained interest in sports wagering in the region.
Payouts and Adjusted Gross Income:
Betting sites paid out $204.8 million to winners during June, emphasizing the active and engaging nature of the sports betting landscape in Tennessee.
After adjustments, operators claimed $23.1 million in adjusted gross income, showcasing the financial dynamics of the market.
Tax Implications:
Operators, under the existing tax structure, paid $5 million in state taxes, providing insights into the economic contributions of the sports betting industry to the state’s revenue.
Hold Percentage and Regulatory Changes:
The operator hold percentage experienced a decrease from May’s 13.3% to 11%, indicating potential shifts in the market’s competitive landscape and player behavior.
Tennessee recently implemented Senate Bill 475, effective from July 1, transforming the tax structure for sports betting. The new regime taxes operators based on their handle, levying 1.85% on the total handle instead of the previous 20% of net revenue. This makes Tennessee the only state in the US with such a tax model.
As Tennessee adapts to changes in its tax framework for sports betting, the June figures provide a snapshot of the market’s response. The sequential decline in the handle, coupled with adjustments in the hold percentage and the introduction of a new tax structure, indicates a dynamic and evolving landscape. The sustained year-on-year growth, even amidst the monthly fluctuations, underscores the enduring popularity of sports betting in Tennessee. As the state navigates these developments, stakeholders and industry observers remain attentive to further shifts and innovations within the evolving regulatory environment.