Tennessee’s sports betting market showcased significant growth in April 2025, recording a 21.7% increase in gross handle compared to April 2024. This year-on-year surge underscores the industry’s resilience, even as seasonal trends caused a slight dip from the previous month.
April 2025 Performance Highlights
In April 2025, Tennessee’s total sports betting gross handle amounted to $463.6 million, a remarkable improvement from April 2024’s $380.9 million. Including $3 million in undisclosed adjustments, the total handle reached $466.5 million. Although this represented a 21.4% year-on-year rise, it marked a 15.5% decline from the $548.6 million recorded in March 2025, reflecting typical seasonal dips post-March Madness.
Privilege Tax Insights
The state’s unique 1.85% handle tax generated $8.6 million in taxes for April 2025. This structure, introduced in July 2023, replaced the previous 20% gross revenue tax. The handle-based tax has been instrumental in boosting tax revenues while encouraging operator participation in complying with regulatory standards.
Key Regulatory Framework and Market Factors
Online-Only Market and Licensing
- Tennessee remains an online-only sports betting market, with no retail sportsbooks permitted.
- Currently, 11 active online operators dominate the market, including FanDuel, DraftKings, BetMGM, Caesars, ESPN Bet, and Fanatics.
- Regulatory flexibility, such as the elimination of the mandatory 10% hold and tiered licensing fees, encourages healthy competition among operators.
Player Demographics and Betting Trends
- Sports bettors in Tennessee follow national trends; 70–72% of users are men, with the 25–44 age range making up the majority.
- Major betting activity occurs in urban centers and college towns, spiking during NFL, NCAA football, and basketball seasons.
- Intriguingly, bets on in-state college teams, permitted under local laws, contribute significantly to total handle figures during key sporting events.
Seasonal Variations in Tennessee’s Sports Betting
The decrease in handle from March to April reflects standard seasonal trends in sports betting. March Madness — the NCAA basketball tournament — traditionally drives heightened activity, followed by a natural cooling-off period in April. Despite these fluctuations, Tennessee’s broader growth trajectory remains robust, driven by favorable regulations and increasing urban participation.
Outlook for FY 2025 and Beyond
Projections estimate a gross handle of $5.4 billion for fiscal year 2025, supported by regulatory adjustments and a growing pool of sports bettors. Tennessee’s online-only model, combined with competitive policies such as tiered licenses and a handle-based tax system, continues to attract operators and foster stable market growth. Industry fundamentals indicate that this trend will persist, cementing Tennessee’s position as a leading sports betting market in the United States.
