For the third month in a row, Tennessee’s sports betting market achieved record-breaking results in November, surpassing previous highs in both betting handle and tax revenue. Gross wagers during the month reached an impressive $598.6 million, an 8.6% increase from October’s record of $551.2 million and 13.2% higher than September’s $524.7.

Data (pdf) released by the Tennessee Sports Wagering Council showed $4.2 million in adjustments applied to the gross handle, bringing the adjusted total to $594.4 million. While details regarding these adjustments were not disclosed, the figures underscore the market’s growth and potential.

November also marked a milestone for tax revenue generated from sports betting, with the state collecting $11 million, a new all-time high. This figure surpassed the $10.1 million collected in October, solidifying Tennessee’s standing as a significant player in the sports wagering industry.

Unique Regulatory Framework

Unlike most other states, Tennessee generates tax revenue through a percentage of handle rather than operator revenue. This innovative approach has been a defining feature of Tennessee’s regulated sports betting market, which launched in November 2020.

Currently, Tennessee only allows online sports betting, as retail wagering remains prohibited in the state. The market is supported by 12 licensed mobile betting platforms, including major names like Caesars, FanDuel, DraftKings, BetMGM, and Hard Rock Bet. Additional operators such as Betly, ZenSports, SuperBook, and Tennessee Action 24/7 also contribute to the market’s robust performance.

Continued Growth Without Retail Betting

Despite the absence of retail sports betting, Tennessee has shown consistent growth in its online wagering market. The state’s ability to set consecutive records demonstrates the effectiveness of its regulatory model and the strong engagement from bettors.

However, the Tennessee Sports Wagering Council does not provide detailed revenue breakdowns by operator or sport, leaving certain performance metrics undisclosed.

National Implications

Tennessee’s record-breaking performance reflects broader trends in the U.S. sports betting industry, where states are experiencing increased participation and higher revenues. The state of New York recently pulled off a similar feat as the New York State Gaming Commission reported that gross gaming revenue for November 2024 reached no less than $231.7 million, surpassing all its previous monthly records. Arizona also reported record-breaking figures for the month of September.

With a regulatory framework focused on maximizing tax revenue through handle and a robust roster of licensed operators, Tennessee continues to stand out as a leader in the online sports betting market. As the market matures, Tennessee’s model may serve as an example for other states exploring ways to optimize their sports wagering industries.