Tennessee sportsbook handle grew year-over-year in June, as the $230.3 million in total TN sports betting was a 7% increase over the same month last year.
In June 2022, Tennessee sports betting handle reached $215.7 million. Sportsbooks also posted year-over-year revenue increases.
Operators ended June with $25.5 million in revenue, a 61% bump over last June’s $15.8 million total.
Sports betting tax changes underway in TN
According to figures released this week by the Tennessee Sports Wagering Council, the Volunteer State collected $4.6 million in June sports betting taxes.
June was the final month operators were taxed 20% on gross gaming revenue. Now, sports betting apps in TN will be taxed 1.85% solely on their betting handle.
The unique Tennessee sports betting handle tax was signed into law in May and took effect in July. Tennessee is the only state in the nation to apply taxation to overall handle.
Minimum hold mandate eliminated
Tennessee sportsbooks registered a hold, or win rate, north of 11% in June.
In addition to the tax changes, operators no longer have a minimum hold requirement each month. They were previously required to hold at least 10% of handle each month, also unique among US state structures.
That mandate ultimately proved unsuccessful and led to the TN sports betting tax changes.
Tax talk across US sports betting
Conversations about taxing sports betting handle happened in legislatures across West Virginia, Kentucky, and Minnesota in recent years. However, those proposals never became law.
The only active handle tax for US sports betting is the federal 0.25% excise tax. This existed long before states outside of Nevada recevied the go-ahead to legalize sports betting in 2018.
Ohio tax changes take effect
Ohio’s biennial budget for fiscal years 2024 and 2025 included a tax increase on sports betting revenue. Ohio sportsbooks will now pay a 20% tax, double the original 10% rate.
The tax rate change took effect on July 1.
