Tennessee Sports Betting Hits $572.7M in December

Tennessee's sports betting market demonstrated remarkable growth in December 2024, with gross wagers totaling $572.7 million. This figure marks a 15.8% increase compared to December 2023 but fell short of the record $598.6 million set in November 2024. The data, released by the Tennessee Sports Wagering Council (SWC), highlights both the market’s expanding potential and some ongoing challenges.

 

Year-on-Year Growth Amid Seasonal Decline

The $572.7 million wagered in December reflects a strong year-on-year growth trajectory for the state’s sports betting industry. Gross sports betting handle, adjusted to $569.8 million after undisclosed adjustments, rose by 16.1% compared to the same month in 2023. However, these gains were tempered by a 4.1% decline from November, a month boosted by major sporting events such as the NFL season and Thanksgiving weekend games.

While December’s performance fell short of November’s record, it still ranks as the second-highest monthly handle since the state legalized sports betting in November 2020. The continued high engagement highlights Tennessee’s robust appetite for sports wagering, driven in part by the rise of legal, regulated operators and the state’s exclusive reliance on online betting platforms.

 

Contributing Factors

One key driver of December’s sports betting activity was the University of Tennessee football team’s participation in the inaugural 12-team College Football Playoff. The Volunteers, who entered the playoff as the ninth seed, attracted significant local interest before their season ended with a loss to Ohio State on December 21. The team’s strong performance may have spurred heightened betting activity during the month, although the SWC does not report operator-level or sport-specific breakdowns to confirm this.

The state generated $10.5 million in tax revenue from sports betting during December. However, questions remain about the nature of the $2.9 million in adjustments applied to the gross handle. The SWC did not disclose details of these adjustments, leaving room for speculation about their origin, such as refunds, promotional credits, or data corrections. The lack of transparency on this front complicates a deeper analysis of the market’s true profitability.

Market Dynamics

Tennessee’s sports betting market comprises 12 approved mobile platforms, including industry leaders such as Caesars, DraftKings, FanDuel, and BetMGM, alongside smaller operators like Tennessee Action 24/7. Notably, December marked the first full month following the exit of Bovada, a major offshore sportsbook that ceased operations in the state on November 7 after receiving a cease-and-desist order and a $50,000 fine from the SWC.

Bovada’s departure is a significant milestone in the state’s effort to combat illegal gambling. SWC chairman Billy Orgel emphasized the importance of licensed operators, stating, “Our licensed sportsbook operators provide important consumer protections not found in the illegal market.” The closure underscores Tennessee’s commitment to fostering a legal and secure sports betting ecosystem, although Bovada’s exit leaves questions about whether former users have migrated to licensed platforms.

Despite the December gains, Tennessee’s sports betting market faces ongoing challenges. The state’s exclusive reliance on online platforms limits opportunities for expansion into retail betting, a lucrative sector in other states. Additionally, the SWC’s lack of detailed reporting on operator revenues and betting activity by sport hinders a more nuanced understanding of the market’s dynamics.

Another challenge lies in maintaining momentum after the peak sports seasons of late fall. With fewer marquee events in the winter months, operators may face a natural decline in wagers, requiring creative strategies to sustain engagement.

 

Our licensed sportsbook operators provide important consumer protections not found in the illegal market, and the closure of Bovada’s virtual doors in Tennessee is an important step toward the eradication of unlicensed, illegal sportsbooks in Tennessee.

 

Conclusion

Tennessee’s sports betting industry continues to grow, as evidenced by December’s $572.7 million in gross wagers and strong year-on-year gains. The market benefits from a competitive roster of licensed operators and the state’s commitment to eradicating illegal gambling. However, the industry must address gaps in transparency and explore avenues for further expansion, such as retail betting, to solidify its position as a leader in the US sports wagering landscape.