Tennessee's sports betting revenue increases by 21.7%, as confirmed by April's figures compared to the previous year.
Tennessee's sports betting market experienced a significant boost in April 2025, registering a 21.7% increase in total gross handle compared to the same month the preceding year. The total amount wagered during the month reached $463.6 million, a noteworthy rise from $380.9 million in April 2024, as per data from the Tennessee Sports Wagering Council.
April's figures, however, indicate a slowdown from the momentum witnessed in March, with the handle falling to $548.6 million, reflecting a 15.5% month-over-month decline. This decrease is likely attributed to the seasonal downturn in major sporting events, such as the NCAA basketball tournament wrapping up and fewer significant events gracing the betting landscape.
Including approximately $3 million in undisclosed adjustments, the April handle climbed slightly to $466.5 million, still mirroring the year-over-year growth trend, while also indicating the same month-on-month decline from March.
Tennessee Adopts Unique Tax Model Yielding $8.6M in April
Tennessee stands alone among U.S. states in its unique sports betting tax model, as it taxes operators based on their handle rather than on revenue. Since July 2023, licensed operators have been levied a flat tax of 1.85% on their total wagers, without regard to their actual earnings. This approach contributed $8.6 million in privilege tax revenue for the state in April alone.
While this approach provides the state with consistent tax income regardless of operator profit margins, it sets Tennessee apart from other jurisdictions that base their taxes on gross gaming revenue (GGR). Critics argue that this structure can burden operators during low-margin months, yet Tennessee continues to uphold the system, particularly when monthly handles register year-over-year increases.
The Tennessee Sports Wagering Council does not disclose detailed revenue figures or individual operator breakdowns, which makes it difficult to evaluate each platform's performance or assess margins.
A Diverse Lineup of 11 Operators Fuels Competition
Tennessee's sports betting industry remains an exclusive online domain, with no retail sportsbooks authorized under state law. The market has seen steady growth since its inception in November 2020, and today features 11 active online platforms.
Well-known national brands like FanDuel, DraftKings, BetMGM, Caesars, Fanatics Sportsbook, ESPN Bet, bet365, Bally Bet, and Hard Rock Bet are some of the players. They are joined by Betly, ZenSports, and the locally-owned Tennessee Action 24/7, providing bettors with a multitude of options for their wagers.
This competitive mix offers Tennessee bettors numerous advantages, including frequent promotions, appealing odds, and a diverse spectrum of market offerings, especially during key events like the Super Bowl, March Madness, and NFL season.
Looking Ahead
With the NFL Draft now complete and the baseball season heating up, sports betting activity may see a modest uptick throughout the summer. However, traditionally, Q2 and Q3 are slower periods for sportsbooks. The real test lies ahead in September, when college football and the NFL kick off, and betting activity invariably surges.
Despite the monthly dip from March, April's year-over-year increase signals continuing growth and engaging interest in regulated sports betting in Tennessee. If this trend persists, the state could surpass its 2024 full-year handle total, assuming no regulatory changes or major disruptions.
The seasonal downturn from March is expected and common in the post-March Madness period. However, maintaining a 20%+ year-over-year increase hints that Tennessee's market is far from stagnating.
Key Statistics for Tennessee Sports Betting in April 2025:
- Gross Handle: $463.6 million
- Adjusted Gross Handle (with undisclosed additions): $466.5 million
- Year-over-Year Growth: 21.7%
- Month-over-Month Change: -15.5%
- Privilege Tax Revenue: $8.6 million
- Tax Rate: 1.85% of gross handle
- Licensed Operators: 11
- Betting Format: Online-only
As the market matures and operator competition intensifies, Tennessee's unique tax model and online-only approach will remain significant storylines to watch. The coming months will shed light on summer betting trends and whether the state can maintain its impressive annual growth during traditionally slower months.
- The Tennessee sports betting market saw a 21.7% year-over-year increase in total gross handle in April 2025, with the adjusted gross handle reaching $466.5 million.
- Despite a 15.5% month-over-month decline from March, this growth trend continues, indicating a strong interest in regulated sports betting in Tennessee.
- Tennessee's unique tax model, which taxes operators based on their handle at a rate of 1.85%, generated $8.6 million in privilege tax revenue for the state in April alone.
