Overview of the Tennessee Sports Betting Industry
Tennessee became the first U.S. state to legalize sports betting without sports betting at retail casinos (American Gaming Association, 2024). When the Senate voted to permit online and mobile platforms exclusively. Legal sports wagering started on July 1, 2020. This enabled Tennessee bettors to place wagers anywhere in the state. In Tennessee, in-person registration is not required. This makes the sector an easily accessible experience for bettors.
The state imposes a 20% tax rate on adjusted gross revenue from sports betting, referred to as a privilege tax, which has generated substantial contributions to state taxes. Eighty percent of its sports betting tax revenue goes to education, 15% to local governments, and the remaining 5% helps fund mental health programs in the state (NewsChannel9, 2024). Tennessee’s sports betting handle has grown. Partnerships with sportsbooks and operators strengthen its market.
Key Highlights of Tennessee Sports Betting:
- Tennessee remains the only state that has legalized sports betting without any physical casinos.
- From its inaugural year in 2020, Tennessee’s sports betting handle has consistently risen, reaching record-breaking levels in 2024. Monthly handles, such as the October 2024 figure of $547.76 million, highlight the market's resilience and popularity.
- The state’s 20% tax on adjusted gross revenue has consistently generated significant tax revenue, helping to fund local governments and public services.
Annual Sports Betting Growth in Tennessee
Tennessee Sports Betting Handle and Revenue
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.
Professional Sports Teams in Tennessee
- 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.
Tennessee Sportsbooks and Operators
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.
Tennessee Snapshot
| Key Aspect | Details |
|---|---|
| Population | Approximately 7.2 million residents as of 2024. (World Population Review, 2024) |
| Political Affiliation | Predominantly Republican, Tennessee has a Republican trifecta, with the party controlling the governorship and both legislative chambers. (270towin.com, 2024) |
| Year Sports Betting Legalized | Tennessee legalized sports wagering on April 30, 2019, when Governor Bill Lee allowed the sports betting bill (House Bill 1) to become law without his signature. Tennessee's sports betting market launched on November 1, 2020, with online-only sportsbooks. |
| Number of Sportsbooks Operating | Eleven sportsbooks operate in Tennessee, including Action24/7, Bally Bet, Betly, BetMGM, Caesars Sportsbook, DraftKings, ESPN BET, Fanatics Sportsbook, FanDuel, Hard Rock, and ZenSports. |
| Gross Gaming Revenue (GGR) 2023 | $2,524,088,884 |
| Sports Betting Handle 2023 | $4,292,352,235 |
| Professional Sports Teams | Tennessee is home to the Memphis Grizzlies (NBA), the Tennessee Titans (NFL), and Nashville SC (MLS). |
FAQs on Rhode Island Sports Betting Revenue
Rhode Island Sports Betting Revenue Trends
How much was Rhode Island sports betting revenue in 2023?
In 2023, Rhode Island sports betting revenue totaled $40,277,816 in gross revenue, a decline from the previous year’s record-breaking performance.
What was Rhode Island's handle for sports betting last year?
Rhode Island's sports betting handle in 2023 was $461,283,426, covering the total amount wagered online and in retail locations like Twin River Casino and Bally's Tiverton Casino.
What trends have been observed in Rhode Island’s sports betting market?
Rhode Island sports betting revenue has grown consistently since launching in 2018.
How does Rhode Island's small population affect sports betting revenue?
Rhode Island’s small population of approximately 1.1 million limits the potential size of its betting market compared to larger states. However, high per-capita participation keeps the state's sports betting revenue competitive with other one-operator states like Oregon.
Legal and Operational Aspects of Rhode Island Sports Betting
When was sports betting legalized in Rhode Island?
Legalized sports betting in Rhode Island began on June 22, 2018, when Governor Gina Raimondo signed the law. The first retail sportsbooks launched in November 2018, with online sports betting following in 2019.
Who manages sports betting operations in Rhode Island?
The Rhode Island Lottery oversees all sports betting operations, including the DraftKings online platform and retail locations at Twin River Casino and Tiverton Casino.
How many sportsbooks operate in Rhode Island?
Rhode Island has a single sportsbook operator, DraftKings, licensed by the state lottery to provide online and retail betting.
How is online betting regulated in Rhode Island?
Rhode Island uses geolocation technology to ensure all online wagers are placed within state lines, complying with federal and state regulations.
Tax Revenue and Allocation
What is Rhode Island’s tax rate on sports betting revenue?
Rhode Island imposes a 51% tax rate on net revenue from sports betting. This rate, among the highest in the U.S., applies to both online and retail operations.
How is Rhode Island’s tax revenue from sports betting used?
Tax revenue from Rhode Island sports betting is directed into the state's general fund, benefiting key public programs like:
- Education: Enhancing public schools and infrastructure.
- Public Safety: Supporting law enforcement and emergency services.
- Problem Gambling: Funding initiatives for prevention and treatment.
How much did Rhode Island collect in sports betting tax revenue last year?
In 2023, Rhode Island collected over $20.5 million in tax revenue, directly supporting programs funded by the general fund.
Market Challenges and Opportunities
What challenges does the Rhode Island sports betting market face?
Key challenges include:
- Small population: Limits the market size for sports betting.
- Regional competition: Neighboring states like Massachusetts and Connecticut offer more operators, promotions, and competitive odds.
- High tax rate: Rhode Island's 51% tax rate may discourage additional operators from entering the market.
What opportunities exist for Rhode Island’s sports betting market?
Rhode Island can explore:
- Tax reforms: Adjusting the tax rate could attract new operators and increase revenues.
- Promotions and engagement: Offering bettor-friendly promotions through DraftKings could enhance market activity.
- Regional partnerships: Collaboration with neighboring states for shared betting pools could boost engagement.
Betting in Rhode Island: Key Details
What sports do Rhode Islanders wager on most frequently?
Football is the most popular sport for bettors in Rhode Island, with many supporting teams like the New England Patriots. Basketball and March Madness also drive significant wagering activity.
Can Rhode Islanders bet online?
Yes, online sports betting is available through the DraftKings platform, allowing residents to place wagers anywhere in the state.
What are the busiest months for Rhode Island’s sports betting handle?
The January Super Bowl period and September NFL kickoff season are typically the highest-performing months for Rhode Island’s handle and revenue.
General Information
How does Rhode Island perform in the national sports betting market?
Despite its small population, Rhode Island performs well on a per-capita basis due to its centralized state lottery management and consistent bettor engagement. Similar revenue can be seen at other one-operator states like Washington and New Hampshire.
How does Rhode Island benefit from legalized sports betting?
Legalized sports betting generates substantial tax revenue for Rhode Island, supporting education, infrastructure, public safety, and problem gambling programs.
What role does the Rhode Island Lottery play in sports betting?
The Rhode Island Lottery regulates all aspects of island sports betting, ensuring compliance, managing revenue, and funneling tax contributions into the general fund.
Are there other forms of gambling in Rhode Island?
In addition to sports betting, Rhode Island offers video lottery, casinos like Twin River and Tiverton, and popular games like Mega Millions.
What are the rules for payouts and winnings in Rhode Island?
DraftKings processes payouts, with credit and payment regulations overseen by the Rhode Island Department of Revenue.