Tennessee’s Sports Betting Handle Saw a Slight Dip in November
The Tennessee Education Lottery released the sports betting handle for the month, and November’s numbers were slightly lower than the record-setting handle in October. Tennessee’s sports betting handle recorded $365.7 million last month, a decrease of 2.6 percent from October’s $375.3 million.
November’s figures are still very respectable, but many other sports betting markets also reported a slight dip in the numbers.
However, Tennessee was one of the states with the highest decreases as New Jersey, Pennsylvania, Indiana, and Iowa all reported a dip of around 0.6-1.2 percent.
November’s gross payouts were $328.8 million, which portrayed a decrease of 6.7 percent from October’s $352.4 million. With the dips across numerous categories, sportsbooks in the state still have some positive news to show.
Tennessee’s adjusted gross income reached record levels as it hit $29.6 million.
This represents a massive increase of 72.1 percent from October’s numbers that only hit $17.2 million. Online operator taxes also hit a record high as sportsbooks paid a combined total of $5.9 million compared to $3.4 million in October, which is 73.5 percent higher.
Can Tennessee Bounce Back in December and Beyond?
The Tennessee mobile-only legal sports betting has done well without any retail locations for the numerous sportsbooks that operate in the state. Tennessee’s hold for online sportsbooks is 10 percent which is higher than the national average of seven percent.
Tennessee Sports Wagering Advisory Council Rulemaking voted to keep the 10 percent rule in the state for the online sportsbook operators.
Operators that do not meet the rule have the option to pay a “true-up” privileged tax rather than a fine of up to $25,000.
Officials in charge of betting rules and regulations in the state proceeded with the higher hold percentage for the sports betting market to keep more prominent sportsbooks from operating at a loss and secure a larger market share.
Evan Davis, the managing director of sports wagering and gaming for SeventySix Capital Sports Advisory, stated that the 10 percent hold limits promotional opportunities for the numerous sportsbooks that operate in the state.
He went on to say, “Moreover, it will actually force operators into giving customers worse betting odds than they will likely be able to find not only in virtually any other state that allows sports betting, but also at the offshore sportsbooks that continue to illegally serve individuals in Tennessee and across the United States.”
The Committee acknowledged the drawbacks that the higher hold rates could cause in the sports betting market. However, they believe that the rules are in place for the state to produce revenue for academic scholarships, gambling education, and other programs that assist the residents in the state.
November was a busy month for the sports betting industry, but the numbers for December will be interesting to see. There were numerous cancellations in the NBA, NFL, NHL, college basketball, and college football bowl game contests.