In April, sports bettors in Tennessee placed wagers totaling $318 million, as reported by the Tennessee Sports Wagering Advisory Council (SWAC). Although this figure represents an 18.9% decrease compared to the previous month, which recorded a remarkable $392.6 million, it shows an encouraging 8.7% year-on-year improvement from April 2022 when $292.8 million was wagered.
Highlights of Sports Betting Activity
Gross Payouts: In April, the gross payouts reached $284.1 million, marking an 18.1% decline from the previous month ($347.1 million). However, compared to the same period last year, gross payouts were up by 7% (April 2022: $265.6 million).
Adjusted Gross Income: The adjusted gross income for April exceeded $32.1 million, reflecting a 26.4% drop from the previous month ($43.7 million). Nevertheless, there was substantial growth of 38.4% year-on-year compared to April 2022 ($23.2 million).
Privilege Tax: The state collected more than $6.4 million as part of the monthly privilege tax, which was down 26.4% from the previous month ($8.7 million). Year-on-year, this tax showed robust growth of 38.4%.
Tax Collection and Legislation
Since launching sports gambling in November 2020, Tennessee has collected $141.6 million in taxes on $8.3 billion of gross wagers. Governor Bill Lee is poised to make a final decision on signing legislation that would change the state’s approach to taxing sportsbooks. The proposed system involves a 1.85% tax on gross wagers, which would have generated $5.9 million in taxes for April.
Currently, Tennessee collects 20% of the industry’s net operator revenue in taxes. Of the sports gambling taxes, 80% is allocated to education, 15% goes to the state for distribution to local governments, and 5% is earmarked for mental health programs.
While Tennessee experienced a decrease in sports betting activity from March to April, it’s important to note that the state still saw significant growth compared to the same period in the previous year. The evolving legislative landscape reflects the dynamic nature of the industry, and these developments suggest that the state’s sports betting market remains robust and continues to evolve.