Tennessee’s Sports Betting Handle Drops in April but Revenue Increases
Tennessee is a sports betting market that only allows online sports betting, which is convenient for visitors that are from areas that don’t offer legal sports betting. The Volunteer State is home to nine mobile sportsbooks.
How Was the Transition From March to April
Across the sports betting industry, monthly handles have witnessed declines in their handles as big events like March Madness and the Super Bowl aren’t taking place. Compared with the fall and winter, the start of baseball season usually doesn’t attract a lot of betting volume.
Mobile sportsbook operators in Tennessee accepted a total of $292.8 million in bets for April, which noted a decrease of 20.9 percent from March. Bookmakers brought in $370 million in wagers on March Madness, the main catalyst for March’s monthly handle.
Reporting a monthly handle of $292.8 million ended the state’s six-month streak of reaching $300 million. This was the lowest amount since September 2021, when bettors across the state wagered $257.8 million.
Examining the Revenue and Promotional Credit Numbers
However, there was some positive news to report from the monthly handle. Operators had a hold rate percentage of 9.3 percent compared to 7.2 percent in the month prior. Because of the better hold rate, bookmakers were able to bring in $26.5 million in revenue, which was an increase of 2.3 percent from March.
It marked the eighth consecutive month where the sportsbooks surpassed $20 million in revenue. Operators will see a decline in their numbers as the summer months approach. The average betting volume should pick back up as the NFL season gets closer.
Promotional spending went from $3.8 million in March to just $3.9 million in April. Still, promotional spending has gone down; bookmakers have hit $20.6 million so far. That $20.6 million signifies a 31.5 percent decrease from the $30.1 million that was handed out during the last four months of 2021.
Another good source of news is the gross revenue increased by 64.7 percent to $110.9 million through the first four months of 2022. The adjusted revenue is also higher by a 40.2 percent rate to $90.2 million. It also benefits from visitors crossing state lines from places such as North Carolina, Georgia, and others, since those states have a limited market or that action is still considered illegal.
Will North Carolina Pushing for Mobile Sports Betting Affect Tennessee
With the Charlotte Hornets and the Carolina Panthers supporting the mobile sports betting bill in North Carolina, the bill only needs to pass through the Senate. The Governor has indicated that he supports the sports betting operation.
The ideal launch date for the supporters is during the upcoming NFL season. If the market launches, experts predict that the state could bring in $25 to $50 million in revenue each year as it is the ninth most populous jurisdiction in the country.
Tennessee will still get visitors from states like Georgia as bettors in the Peach Stare have to wait another year. However, the Volunteer State will certainly lose visitors from the Tar Heel State.
