Tennessee's sports betting volume down to lowest level since launch

Since the first month of legalized wagering in the state, Tennessee's sports betting volume declined to its lowest level. Handle falls to $160.9 million in May as sports betting offseason hits the second month, WTVF reports.

May's modest month-over-month drop in wagering from April is an expected result during what is the traditional offseason for sports betting, and the decline is in line with a nationwide trend of declining revenue over the last two months, according to PlayTenn analysts, which track the Tennessee gaming market.

Jessica Welman, analyst for the PlayUSA.com network, which includes PlayTenn.com noted: There is no avoiding a summer slowdown, especially in states like Tennessee where football has outsized importance to sportsbooks. For the most part, though, sportsbooks in the state have been innovative enough in keeping bettors engaged with the NBA, hockey, baseball, and other sports, to blunt the dips."

Sportsbooks took in $160.9 million in wagers in May, according to official data released Wednesday morning. That is down 6.7% from $172.4 million in April. May's bets produced $15.4 million in gross gaming revenue, up from $14 million in April. Adjusted gross income hit $13.7 million, which yielded $2.7 million in tax revenue for the state.

With May's win, Tennessee sportsbooks have now generated $109.9 million in gross gaming income, surpassing $100 million in revenue in just seven months.

Tennessee's month-over-month decline was steeper than New Jersey (up 8.9%), Indiana (up 7.6%), Colorado (up 1.9%), Iowa (down 2.9%), and Michigan (down 6.0%), but on par with Pennsylvania (down 6.7%). In April, Tennessee's handle dropped 13.6% from March, outperforming all but New Jersey among the 10 largest markets.

Nicole Russo, analyst for PlayTenn.com noted: "Playoff appearances by the Memphis Grizzlies and Nashville Predators undoubtedly helped in May. But with early exits for both franchises, sportsbooks will have to look outside the state to generate interest until football season begins, other than NASCAR's Ally 400. The Olympics later this summer could help give sportsbooks a boost."

In May, FanDuel topped the market with $56.9 million in wagers, producing $6.5 million in gross gaming revenue. BetMGM was second in May with $56.8 million in bets, yielding $5.1 million in GGR. DraftKings was third with a $39.6 million handle and $3.0 million in revenue.