February 24, 2021 Sports Betting, Casino

Tennessee sports betting market tops $523m in first three months

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January saw $211m in handle, extending record launch.

Online sportsbooks in Tennessee took in $211m in wagers in January, setting several records.

In topping $200m in handle, the Volunteer State became the seventh state to generate more than $200m in sports bets in a single month.

Tennessee has taken in $523m in wagers in its first three months of operations, breaking the mark of $274.2m previously held by Indiana.

According to data from The Tennessee Education Lottery, the January handle was up 16.6% from $180.9m in wagers in December.

Operators enjoyed a record $21.8m in revenue in January, an increase of 56.8% from $13.9m in December. In three months, Tennessee has produced $49m in operator revenue.

The TEL collected $4.3m in state taxes last month.

Analysts from PlayTenn said February should be another good month for Tennessee sports betting operators, thanks to strong interest in the Super Bowl. Preliminary data from the TEL said books took in more than $15m in wagers on the game, with a win of nearly $3m.

“Tennessee continues to be among the most surprising ascents of any US sports betting market,” Jessica Welman, analyst for PlayTenn.com, said in a statement. “The records will not last, as Michigan already proved by snapping Tennessee’s record for a debut month. But the industry is off to a better start in the Volunteer State that anyone could have expected.”

There is a headwind coming for Tennessee, as Virginia launched online sports betting in January – the first neighboring state to do so.

“The near-perfect conditions Tennessee enjoyed in its first two months were never going to last forever, but continued growth even as competition rises remains encouraging,” assessed Dustin Gouker, analyst for PlayTenn.com. “It is early, but it appears that the market has plenty of room for growth, even if more nearby states regulate sports betting themselves.”

PlayTenn noted the TEL does not delineate results from individual sportsbooks, but BetMGM has reported its Tennessee sportsbook took $70m in wagers in January bets, approximately one-third of the state’s handle.

Other large operators in the state include FanDuel, DraftKings and local operator Action 24/7.

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