Tennessee’s sports betting market continues its upward trajectory, recording over $500 million in monthly handle for five consecutive months from September 2024 to January 2025. This sustained growth marks a major milestone, reflecting broader national trends in the booming sports betting industry.
Tennessee’s record-breaking handle
During this period, the state’s betting handle remained strong:
- September 2024 – $520,834,560
- October 2024 – $547,764,023
- November 2024 – $594,387,437 (all-time high)
- December 2024 – $569,849,216
- January 2025 – $543,646,737
Before this streak, Tennessee had only surpassed the half-billion mark once, in November 2023. The sustained increase highlights the state's growing betting activity and aligns with national expansion trends in the sports betting industry.
Record tax revenue from Tennessee’s betting boom
Tennessee’s sports betting tax revenue also saw historic highs, with the state collecting over $10 million in Privilege Taxes for four out of the last five months. The only exception was September, which narrowly missed the threshold.
Since July 2023, Tennessee has applied a 1.85% tax on total handle, replacing the previous 20% tax on adjusted gross revenue. The monthly tax revenue figures are as follows:
- September 2024 – $9,612,392
- October 2024 – $10,109,043
- November 2024 – $10,969,178
- December 2024 – $10,516,365
- January 2025 – $10,032,973
What’s driving Tennessee’s sports betting surge?
Unlike other markets experiencing growth through new retail sportsbooks or casino expansions, Tennessee’s increase comes despite having no physical casinos or retail sportsbooks. The entire betting market is online, with 11 active sportsbooks operating in the state.
As of February 2025, Tennessee's sports betting market features 11 active online sportsbooks:
- BetMGM
- FanDuel
- DraftKings
- Caesars Sportsbook
- Fanatics Sportsbook
- Hard Rock Bet
- ESPN BET
- Betly
- ZenSports
- Action 24/7
- Wagr
These platforms offer a range of betting options for users within the state. It's important to note that Tennessee's sports betting is conducted exclusively online, as the state does not permit retail sportsbooks or casinos.
The surge also coincides with record-breaking national trends. In November 2024, the U.S. sports betting market reported its highest-ever monthly revenue, up 21.3% from November 2023, fueled largely by the NFL season. According to the American Gaming Association (AGA), total gaming revenue—including traditional casino gaming, sports betting, and iGaming—reached $6.65 billion in November, with new all-time highs for iGaming and sports betting.
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Tennessee sports betting outlook for 2025
With a robust tax structure, growing sportsbook engagement, and national market expansion, Tennessee’s sports betting momentum is expected to continue into 2025. If trends hold, the state could set new records in both handle and tax revenue in the coming months.
Major highlights:
- Tennessee’s sports betting market sustained five consecutive months with more than $500 million in wagers.
- November 2024 set a new benchmark, approaching $600 million in total bets.
- The state generated over $10 million in tax revenue in four of the past five months.
- Tennessee’s sports betting industry remains fully digital, with no brick-and-mortar casinos or retail sportsbooks.
