The state took $211M in January, a growth of 16.6% from December

Tennessee is 7th state to generate over $200M in sports bets in a single month

BetMGM reported that its Tennessee sportsbook collected $70 million in January bets, representing about one-third of the state's entire handle.
2021-02-25
Reading time 1:41 min
January's results pushed lifetime gross sports betting revenue to $49 million and wagers to $523 million, topping Indiana's $274.2 million, which was the previous record for a market's first three months.

Online sportsbooks in Tennessee generated $211M in January, a growth of 16.6% from December, to push the state's three-month handle to $523M, according to data from The Tennessee Education Lottery. Those wagers produced a record $21.8 million in the operator revenue, up 56.8% from the previous month, which in turn generated $4.3 million in state taxes.

It became the 7th state to generate more than $200 million in sports bets in a single month while extending its record launch to three months. "Tennessee continues to be among the most surprising ascents of any U.S. sports betting market," said Jessica Welman, analyst for PlayTenn.com. "The records won't 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."

Tennessee's pace remains historic through three months. January's results pushed lifetime gross sports betting revenue to $49 million and wagers to $523 million, topping Indiana's $274.2 million, which was the previous record for a market's first three months. Tennessee's bettors showed significant interest in February's Super Bowl, wagering more than $15 million on the big game, producing a win of nearly $3 million, according to unofficial preliminary data released by the TEL.

The unexpected Kansas City loss helped sportsbooks easily attain a 20% hold for the event, which should help them meet the 10% overall hold requirement in February.

In terms of new challenges for the state, Virginia launched online sports betting in January, the first of Tennessee's neighbors 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," said Dustin Gouker, analyst for PlayTenn.com. "It's early, but it appears that the market has plenty of room for growth, even if more nearby states regulate sports betting themselves."

The TEL does not report results from individual sportsbooks. But in a year-end earnings call, BetMGM reported that its Tennessee sportsbook collected $70 million in January bets, representing about one-third of the state's entire handle. That would presumably place it in a heated competition with rivals FanDuel and DraftKings, the nation's two largest sportsbook operators, in addition to local operator Action 24/7.

Those operators could have new avenues to generate wagering, too, including the possibility of allowing sports betting pools, even ahead of March Madness, according to analysts.

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