Surge in Tennessee Sports Betting Driven by NCAA Tournament
Tennessee sports betting experienced a rise in March, largely fueled by the NCAA Tournament and strong performances by the University of Tennessee basketball teams.
The state’s total sports betting handle for March reached $471.99 million, marking a 24.8% increase from February’s $378.24 million. This surge in betting activity not only represents a month-over-month lift but also shows a 20.2% rise compared to the previous year’s March handle of $392.67 million.
Tax Revenues Show Slight Year-over-Year Decrease
Despite the impressive growth in handle, the privilege tax collected in March was $8.71 million, a slight drop of 0.5% from the $8.75 million collected in the same month last year. This marginal decline in tax revenue comes amidst the overall growth in betting volume.
Tennessee remains unique in its approach to sports betting, operating exclusively through mobile platforms and eschewing brick-and-mortar sportsbooks. The state has adapted its tax strategy over time, shifting from taxing revenue to taxing handle directly at a rate of 1.85%, after accounting for a 0.25% federal excise tax on handle.
The Role of March Madness
The NCAA Tournament, particularly the participation of the University of Tennessee’s men’s and women’s basketball teams, played a crucial role in driving the betting enthusiasm. The men’s team, seeded second, advanced to the Elite Eight, while the women’s team, seeded sixth, exited in the second round. T
The Tennessee sports betting market continues to expand, with 13 operators now licensed in the state. The entry of new operators, such as ZenSports which was approved in May 2023, is indicative of a healthy and growing market.
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