Just like the rest of the nation, the Volunteer State took a step back in April as official monthly Tennessee sports betting figures were released by the Tennessee Sports Wagering Advisory Council on Thursday morning.
After a 20% jump in sports betting handle during March, April's sports betting handle fell to $318.4M, down 18.9% from March's $392.66M. It did, however, yield an 8.7% increase from April 2022 ($292.79M).
Gross payouts also declined to $284.15M, down 18.1% from March's $347.16M, but up 7% from this time last year ($265.65M).
Adjusted gross income for the month totaled more than $32.17M, a significant 26.4% downturn from March's $43.73M. Again, though, it was a 38.4% increase from April 2022 ($23.24M).
The state's monthly privilege tax exceeded $6.43M, down 26.4% from March ($8.75M) and up 38.4% from April last year ($4.64M).
New Tennessee Tax Law Officlal
A bill that would drastically change taxes for Tennessee sports betting app operators was signed by Gov. Bill Lee to Wednesday.
It will take effect on July 1.
SB 475 will make the 20% tax the state levies on Tennessee sports betting mobile operators disappear. In its place, the state is enacting a 1.85% tax on the handle, or the amount wagered. The new rate could mean the state would see less revenue.
Tennessee will be the first state to tax operators by handle.
Currently, the state has 12 approved operators that are live in the state, with its newest approved operator - Fanatics Tennessee Sportsbook - gradually rolling out its product.
On Sunday night, Fanatics agreed to acquire the U.S. operations of PointsBet, in a reported deal worth about $150 million in cash.
Other licensees in the Volunteer State are Bally Bet, Barstool Sportsbook, Betly, BetMGM Tennessee, Caesars Tennessee Sportsbook, DraftKings, FanDuel, Hard Rock Sportsbook, SuperBook, Tennessee Action 247 and WynnBET.