Eighty percent of the tax revenue from sports gambling goes to education, 15% goes to the state for distribution to local governments and 5% goes toward mental health programs, according to Andy Davis, the chief financial and information systems officer for the Tennessee Education Lottery.
Oversight of sports gambling in Tennessee shifted Saturday to the new Sports Wagering Advisory Council, which will meet Thursday (6) morning.
Tennessee collects 20% of net operator revenue in taxes.
“Most states that have legalized and regulated sports betting have undoubtedly done so with additional tax revenue as the main carrot,” said Alec Cunningham, an analyst for PlayTenn.com.
“Tennessee regulators made some missteps during their first year on the job, but ensuring that the state gets a fair share has not been one of them. They have set up a relatively balanced structure that has created a dependable revenue source without hamstringing operators,” Cunningham added.
Tennessee sports books collected US$36.9 million in gross revenue in November.
Since gambling began in the state in November 2020, operators have brought in US$242.4 million in gross revenue that led to US$41.4 million in taxes. In Virginia over that time, US$254.4 million in gross revenue led to US$18.6 million in taxes collected by the state.
American football has continued to be the main driver in sports gambling totals. After US$375.3 million in bets were placed in the state in October, the total fell to US$365.7 million in total bets in November.
Average volume bet per day, however, rose from US$12.1 million per day in October to US$12.2 million per day in November, which had one fewer day than October.
“Even with one fewer football weekend than in October, wagering grew, a sign that the wave of action over the last three months is sustainable beyond football season,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayTenn.com. “Sports books continue to expand their reach to new customers, and bettors are becoming increasingly comfortable with more diverse forms of betting. It is difficult to imagine a better season than the one that Tennessee sports books have enjoyed.”
Source: The Center Square
