The Tennessee Sports Wagering Council (SWC) reported that January bettor spending at the state’s licensed sportsbooks reached $549 million, dropping 4.1% from December 2024. However, the consistently impressive Tennessee betting revenue and significant year-over-year growth indicate a robust market.Tennessee Sees Sports Betting Handle Dip Month on Month in January
This is probably why the reactions following this news have been more measured than concerned. Industry experts say the drop in January’s sports betting handle is not indicative of any particular trend or problem. As we count down to next month’s report, it is important to examine January’s figuress from the right perspective.Tennessee Sees Sports Betting Handle Dip Month on Month in January
A recent report released by the Tennessee Sports Wagering Council (SWC) confirms a drop in the state’s sports betting handle for January, which has continued to draw reactions from prominent figures in the industry. The numbers show a 4.1% drop from December’s $572.7 million to $449 million in January, despite marking the fifth consecutive month in which total wagers have surpassed the half-billion dollar mark.Tennessee Sees Sports Betting Handle Dip Month on Month in January
When placed side-by-side with data from January last year, the figures showed an impressive year-on-year growth of 17.4%. Even after adjustments (amounting to $5.3 million) were made, the net handle clocked at $543.6 million, representing a 16.7% increase on January 2024 records.
It would probably have been more appropriate to dissect January’s figures. Traditionally, January is generally considered to be one of the strongest months for sports betting across the USA, and for Tennessee sportsbooks, by extension.
The market has always benefited from the spate of sporting action across the NFL playoffs, college ‘Bowl’ games, and mid-season NBA playoffs. January only falls behind September as the busiest month in the US sports calendar, thanks to the NFL season kicking off around that time.
Also, January’s figures trail the state’s all-time monthly record of $598.6 million by 8.3%. However, it still ranks at number four in the list of the state’s highest monthly showings since November 2020, when it first opened its doors to legal sports betting.
Experts have stated that the slight month-over-month decline agrees with seasonal patterns seen in more established states. The series of holiday promotions lined up by most sportsbooks in December, coupled with end-of-year sporting events, all help to make December a typically busy month for sports bettors.
It is logical, then, that January will bring about a natural correction, especially if you take into account the added expense of Christmas for bettors. These factors can all explain why January’s figures are seen as a mixed bag, and also explain any hesitation to draw any conclusions.
Despite the drop in January’s sports betting handle, the tax revenue generated by the sector remained robust, with Privilege Tax figures for January reportedly exceeding $10 million. Once again underlining that the state’s gambling industry has continued to serve as a constant source of much-needed tax revenue.
Revenue generated from sportsbook taxation has been invested in the state’s education initiatives, local government programs, and problem gambling services. Concerns have been raised
The monthly reports that the SWC releases do not explicitly specify what “adjustments” have been made. It doesn’t also break down the numbers to the operators or the sport, or make public the operator revenue figures. Industry watchdogs have led calls for more detailed reporting practices to make room for more comprehensive analysis.
Tennessee holds the important distinction of being the first to adopt the radical approach of only licensing online sports betting sites. States like Vermont and Wyoming have since adopted this same ‘online first’ approach, by not permitting retail sportsbooks to operate in their jurisdictions.
Eleven online sports betting brands currently hold licenses to operate in Tennessee, including top sportsbook names like Caesars, FanDuel, DraftKings, Fanatics, ESPN Bet, BetMGM, Hard Rock Bet, and Bally Bet. The smaller sportsbooks include Betly, ZenSports, and Tennessee Action 24/7.
The online-only system that Tennessee decided to adopt has helped to eliminate geographical barriers to sports betting. People from Tennessee can easily access legal betting sites regardless of how close they are to urban centers.
Since legalizing sports betting in November 2020, Tennessee’s ‘online first’ strategy has continued to produce impressive results for the most part. While January’s revenue figures show a drop from December, the strong year-over-year growth paints a different picture altogether – one of sustainability and growth in an ever-evolving industry.
