April saw a staggering $460 million in sports bets placed by Tennessee residents
Current State of the Sports Betting Industry in Tennessee
The sports betting industry in Tennessee is thriving, with a notable surge in handle over the past year. According to recent reports, the sports betting handle for April 2025 stood at $463.5 million, marking a 21% year-over-year increase but a 15% decrease from March 2025. This growth continues a significant uptick seen in 2024, with the total annual handle reaching $5.265 billion, a 22.8% increase from 2023.
Tennessee differentiates itself from other states by taxing sports betting operators on their total handle, with a tax rate of 1.85%. This approach resulted in the state collecting $8.5 million in taxes for April, slightly lower than the $10.1 million generated in March.
The tax revenue from sports betting is directed towards various state programs, including education and infrastructure projects. While the specific allocation to the Tennessee Education Lottery is not explicitly provided, the increased handle and tax revenue generally support the state's initiatives.
As of now, there are 11 active online sports betting platforms in Tennessee, with major brands like FanDuel, DraftKings, and BetMGM among them. The state legalized sports betting in April 2019, with online platforms starting operations in November 2020, and it does not permit retail operations.
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Sources:[1] Tennessee Education Lottery report (2025)[2] Tennessee Department of Finance and Administration (2025)[3] Tennessee Sports Wagering Ad Hoc Committee report (2025)[4] American Gaming Association (2024) Annual Report
In light of the growth seen in the sports betting industry in Tennessee, it's not surprising that online casino giants like FanDuel and DraftKings have expanded their operations to the state. Furthermore, with an increasing handle and rising tax revenue, it seems likely that the online casino market in Las Vegas might soon see competition from Tennessee.
