Tennessee Sports Betting Sees Month-on-Month Decline

Tennessee's sports betting market experienced a slight decline in player spending in January 2025, although the figures still represent some of the highest wagering levels since the state legalized sports betting in November 2020. Gross wagers for the month hit $549.0 million (£442.7 million/€530.4 million), reflecting a 17.4% year-over-year increase, though it was 4.1% lower than December’s $572.7 million.

Despite the month-on-month dip, Tennessee’s January 2025 total remains the fourth-highest since the launch of the legal market, falling just 8.3% short of the state's all-time record of $598.6 million set in November 2024. The slight drop in wagers aligns with broader seasonal trends, with many states seeing betting activity slow after the high-volume months surrounding major sports events like football season.
Adjusted Figures Show Modest Decline

The Tennessee Sports Wagering Council reported an adjusted gross handle of $543.6 million for January, after accounting for $5.3 million in unspecified “adjustments.” This adjusted figure still marks a significant 16.7% increase compared to January 2024. However, it represents a 4.6% decline from December’s adjusted total of $570.3 million.

The lack of transparency regarding these adjustments, including their specific nature and the breakdown of operator and sport-specific activity, leaves some gaps in understanding the full dynamics of the market. For example, the state does not disclose operator revenue or offer detailed insight into which sports generated the most betting activity.

Tax Revenue Reaches $10 Million

In terms of state revenue, Tennessee’s privilege tax from sports betting in January topped $10 million. This marks another positive outcome for the state, as the revenue generated from the market continues to contribute to Tennessee’s fiscal landscape. Despite the month-on-month decrease in wagering, the state’s sports betting tax revenue remains a key source of funding, with officials likely to keep a close eye on trends as they unfold in the coming months.

Tennessee has carved out a unique position in the U.S. sports betting landscape by being the first state to offer online-only sports wagering, with no brick-and-mortar retail locations. Since then, states like Vermont and Wyoming have followed suit, legalizing digital-only platforms for sports betting.

Currently, 11 online sports betting platforms are operational in Tennessee, including major national brands such as Caesars, Bally Bet, FanDuel, DraftKings, Fanatics, ESPN Bet, BetMGM, and Hard Rock Bet. In addition, local operators like Betly, ZenSports, and Tennessee Action 24/7 also contribute to the state’s digital sports betting ecosystem.

This digital-first approach has proven successful in Tennessee, offering a wide range of betting options through mobile apps and websites without the need for physical sportsbooks. The state’s robust online sports betting infrastructure is likely one of the factors that continue to drive strong engagement, even amid slight fluctuations in wagering totals.

January’s total remains the fourth-highest since the state legalized sports betting in 2020, reflecting continued strong engagement despite a slight dip from December.

Conclusion

While January’s results in Tennessee show a slight dip in player spending, the state’s sports betting market remains robust overall. With gross wagers still above $540 million, it is clear that Tennesseans continue to embrace the convenience and excitement of online sports wagering.

However, the month-to-month decline raises some questions about the sustainability of high wagering levels, especially after the peak months of football season. The coming months will provide a clearer picture of how the market continues to evolve, particularly as Tennessee’s digital-only model faces increasing competition from neighboring states and emerging legal sports betting markets across the U.S.

For now, Tennessee’s sports betting market remains one of the most dynamic in the country, with strong potential for future growth, provided that lawmakers and regulators continue to support and refine the state’s digital infrastructure.