Tennessee Sports Betting Thrives in April with Increased Yearly Wagering
April proved to be a strong month for sports betting in Tennessee, with bettors placing $384.2 million in wagers, according to the Tennessee Sports Wagering Advisory Council (SWAC).
This represents a 20.7% increase compared to the same month last year. However, the handle saw a decline of 19% from March’s high of $473 million.
Tax Revenue and Distribution
The state benefited from a considerable amount of tax revenue, generating $7 million in privilege tax, which is 9.4% higher than in April 2023.
The tax structure was adjusted by Senate Bill 475 in July 2023, which established a 1.85% levy on the sports betting handle. The allocation of these taxes is strategically aimed at supporting societal needs: 80% is directed towards education, 15% to local governments, and 5% to mental health programs.
Impact of the New Tax Regime
The revised tax regime under Senate Bill 475 appears to be effectively balancing the growth of the sports betting industry with substantial contributions to critical state programs.
By tying tax contributions to the handle rather than revenue, Tennessee ensures a steady flow of funds to key sectors regardless of the net outcomes for sportsbooks.
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