Tennessee punters stake $27.4m in first week of legal wagering
Sports betting – for mobile devices only – went live in Tennessee from 1 November, with industry giants BetMGM, DraftKings and FanDuel among the first wave alongside local brand Action247.
For that day, handle came to $5.1m, and after payouts and adjustments – including the state’s controversial 10% fixed payout rate – revenue amounted to $800,000. The state’s 20% gross revenue levy resulted in licensees paying tax of $160,000.
For the week to November 8, customers staked $27.4m in total, which resulted in revenue of $2.5m for the seven day period. This generated taxes of $509,000 for the state.
The majority of this tax revenue (80%) is to go to the state treasurer to deposit in the Lottery for Education Account, the main beneficiary of lottery revenue, with a further 15% to be distributed to local governments in the state.
The remaining 5% will go to the state’s Department of Mental Health and Substance Abuse Services, to fund grants for problem gambling services.
“These numbers are encouraging as we work to protect the consumer, promote fairness in sports and regulate this new Tennessee industry that provides critical funds for education, as well as local governments and problem gambling services,” Tennessee Education Lottery president and chief executive Rebecca Paul Hargrove said.