Tennessee’s online-only sports betting market continued to showcase remarkable growth in April 2025, reporting a significant year-on-year increase in gross handle. With unique regulations and steady market engagement, Tennessee remains a defining player in the U.S. sports betting landscape.
Tennessee Records $463.6 Million Handle in April 2025
April 2025 saw Tennessee’s sports betting handle reach $463.6 million, a 21.7% increase compared to April 2024’s $380.9 million. An additional $3 million in undisclosed adjustments brought the total gross wagers to $466.5 million, marking a 21.4% year-on-year rise.
The monthly handle, however, experienced a 15.5% decrease from March 2025’s $548.6 million. This decline is attributed to a typical post-March Madness slow season seen across U.S. sports betting markets.
Handle Growth Trends
- April 2025: $463.6M gross handle (+21.7% YoY)
- March 2025: $548.6M handle (-15.5% MoM)
- April 2024: $380.9M gross handle
Key Features of Tennessee’s Market
Online-Only Betting Platform
Operating since November 2020, Tennessee’s sports betting market is exclusively online, making it the only state in the U.S. without any retail sportsbooks. Major platforms such as FanDuel, DraftKings, BetMGM, and Caesars have established their presence in the state, alongside smaller operators like Tennessee Action 24/7 and ZenSports. As of April 2025, there are 11 licensed sportsbooks actively operating in the state.
Handle-Based Taxation
Unlike other states, Tennessee employs a unique tax system that collects 1.85% of the total betting handle. Introduced in July 2023, this handle-based privilege tax brought in $8.6 million in contributions for the state in April 2025 alone, reinforcing its distinction in the U.S. sports betting industry.
The Impact of Tennessee’s 10% Annual Hold Requirement
One controversial regulatory policy shaping Tennessee’s betting landscape is the mandate that sportsbooks maintain a 10% annual hold. This means operators must restrict payouts to no more than 90% of their gross handle annually. For comparison, Nevada sportsbooks typically report a hold rate of around 5.5%.
While this requirement encourages state tax revenue, it can also potentially reduce the attractiveness of Tennessee’s odds, as bettors may perceive less value compared to states with more favorable payout ratios.
Economic and Community Contributions
- Revenue Growth: Tax income continues to rise alongside handle increases, benefiting state programs and initiatives.
- Market Maturity: With consistent year-on-year growth, Tennessee is cementing its role as a leader in the digital sports betting space.
Conclusion
Tennessee’s sports betting market remains a fast-growing and unique environment, characterized by its online-only structure, innovative handle-based taxation approach, and strict regulatory requirements. While the seasonal slowdown in April was expected, the 21.7% year-on-year growth signals sustained customer trust and engagement.
Moving forward, Tennessee’s ability to balance fair bettor experiences with its unique revenue-focused policies will be crucial to its continued success.
