Tennessee Sports Betting Revenue: Key Insights in 2024

Tennessee’s sports betting market has seen impressive growth since its launch in November 2020, with total betting activity and revenue increasing year-over-year. As the first state to implement an online-only sports betting model, Tennessee continues to attract bettors statewide, generating significant adjusted gross revenue and tax contributions.

2020–2023 Performance Overview

From 2020 to 2023, Tennessee’s sports betting handle—the total amount wagered—grew exponentially, reflecting the market's expansion:

• 2020 (partial year): $312.34 million
• 2021: $2.73 billion
• 2022: $3.85 billion
• 2023: $4.29 billion

In parallel, sports betting revenue, the money operators retain after paying out winnings, rose significantly:

• 2020: $27.22 million
• 2021: $196.5 million
• 2022: $340.26 million
• 2023: $2.52 billion

The state's hold percentage—the proportion of the handle retained as revenue—fluctuated during this period, averaging between 7.56% and 8.82% before sharply increasing to 54.96% in 2023.

Tennessee Sports Betting Handle and Revenue in 2024

In 2024, Tennessee sports betting revenue continued to grow, with the sports betting handle surpassing $4.1 billion by October. The year began strongly, with January 2024 generating a gross handle of $465.81 million, fueled by events like the NFL playoffs and Super Bowl. After a summer dip, with July’s handle dropping to $271.54 million, the market rebounded in October 2024, setting a monthly record handle of $547.76 million, with adjusted gross revenue of $10.1 million.

Tennessee Sports Betting Tax Revenue

The state’s 20% privilege tax on sports betting contributed millions in tax revenue to support local governments and public programs. Overseen by the Tennessee Sports Wagering Council, this online-only sports betting model continues to attract Tennessee bettors.

• Tennessee Titans (NFL): Based in Nashville, the Titans compete in the National Football League's AFC South Division. They play home games at Nissan Stadium.
• Memphis Grizzlies (NBA): This Memphis-based team represents Tennessee in the National Basketball Association's Western Conference Southwest Division.
• Nashville Predators (NHL): Competing in the National Hockey League's Central Division, the Predators have built a passionate fan base in Nashville.
• Nashville SC (MLS): As a Major League Soccer team, Nashville SC adds to the state's diverse sports offerings.

Popular Sports Leagues Among Tennessee Bettors

• Football reigns supreme in Tennessee, with the NFL and college football attracting significant attention. The Tennessee Volunteers, representing the University of Tennessee, have a storied history and a dedicated following, especially in college football (Tennessee National, 2023)
• Basketball also has a strong presence in the state. The Grizzlies and NCAA college basketball garner substantial interest, particularly during March Madness.
• Hockey has seen growing enthusiasm, largely due to the Nashville Predators' success and community engagement. Soccer is also rising, with Nashville, SC, contributing to the sport's increasing popularity.

The Tennessee Sports Wagering Council, established to oversee the sector, works closely with licensed sports betting operators to ensure compliance and maintain market integrity. Eleven major sportsbooks such as BetMGM, FanDuel, and DraftKings dominate the market, allowing bettors to wager on various events, including NFL, NHL, and NBA games. Local teams, including the Nashville Predators and Memphis Grizzlies, are popular for Tennessee bettors, contributing significantly to the state’s betting activity.

Tennessee's sports betting market operates exclusively online, with several licensed sportsbooks providing a competitive environment for bettors. The Tennessee Sports Wagering Advisory Council (SWAC) oversees the regulation and licensing of these operators, ensuring compliance with state laws and consumer protection standards.

As of December 2024, the following sportsbooks are authorized to operate in Tennessee:

• Action24/7
• Bally Bet
• Betly
• BetMGM
• Caesars Sportsbook
• DraftKings
• ESPN BET
• Fanatics Sportsbook
• FanDuel
• Hard Rock
• ZenSports

This diverse selection fosters a competitive market, offering Tennessee bettors a variety of platforms to choose from, each with unique features and betting options. The SWAC ensures that all operators adhere to responsible gaming practices and contribute to state tax revenues, which support educational programs, local infrastructure, and responsible gaming initiatives.