Tennessee Sports Betting Handle Up Almost 13% in January
Following a slight decrease in December, Tennessee sports betting experienced a boost for January.
The state reported a total sports betting handle of $386.1 million, an increase of 12.9% from December’s $341.8 million.
January’s gross payouts was $349.8 million, up 10.3% from December’s $317.2 million.
Tennessee’s adjusted gross income for the month was $29.1 million, an increase of 76.3% from December’s $16.5 million.
The state’s January privilege tax was $5.8 million, up 76.3% from December’s $3.3. million.
Tennessee Sports Betting, January vs. December
|Total Handle||Gross Payouts||Adj. Gross Income|
|Change||Up 12.9%||Up 10.3%||Up 76.3%|
Note: Tennessee’s sports betting market is all mobile.
Tennessee Operators May Face Penalty
During a recent Sports Wagering Advisory Council & Committee (SWAC) Meeting, Executive Director Mary Beth Thomas highlighted how tax data from the Tennessee Education Lottery and the four operators who went live at launch doesn’t match.
The discrepancy is a problem since Tennessee’s 10% hold requirement was not met last year, with only a 7.3% hold on the adjusted gross income on the $2.7 billion wagered in 2021.
Operators who did not meet the rule regarding capped payouts may be subject to a penalty of up to $25,000. According to Thomas, under the rules of the Sports Wagering Advisory Council, an operator can cure any such penalty by paying a privilege tax “true-up” in the amount of the difference of what the operator paid and what it would have paid if it had complied with the rule.
“We do not yet have the information on what penalties will be assessed,” Thomas said in an email to Gambling.com. “The council must make a determination on that issue at its next meeting on March 10 at 10 a.m. CT.
“As far as solutions moving forward, I believe that the operators are all working on managing their operations to ensure compliance with the capped payout rule.”
Four Operator Licenses Renewed
The four original operators who received licenses in Tennessee are DraftKings Sportsbook, FanDuel Sportsbook, BetMGM and Action 24/7.
Each of the operators had their licenses renewed by the SWAC. Eight vendors are now considered fully renewed, including platform providers Amelco and Kambi.
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