Tennessee recorded a sports betting handle of $598.6 million in November 2024, overtaking the previous record of $551.2 million set in October. After adjustments amounting to $4.2 million, the net gross handle landed at $594.4 million. This represented an 8.6% increase from October’s handle and a 16.1% increase from November 2023.
Such growth has made November 2024 the most successful month in Tennessee’s sports betting history. Tax revenue from sports betting also reached a record-breaking $11 million, surpassing the $10.1 million collected in October. Since sports betting was legalized in Tennessee in 2019, the market has consistently shown an upward trend, particularly in 2024.
Mobile Platforms Driving Tennessee’s Record-Breaking Growth
Tennessee’s sports betting market operates exclusively online, with 12 active mobile platforms accounting for its impressive performance. Popular platforms like FanDuel, DraftKings, and BetMGM dominate the market, but newer entrants like ESPN BET and Bally Bet have expanded consumer options. This dynamic has pushed operators to innovate features, improve odds, and refine promotions, ultimately propelling Tennessee to another record-breaking month.
Brands such as ZenSports and McLuck have also contributed by adding competition to the market. This competitive landscape ensures better deals and enhanced user experiences for bettors, creating a robust ecosystem that benefits both consumers and the state. By offering personalized promotions and loyalty programs, platforms are increasingly tailoring their strategies to attract and retain customers, further fueling growth.
Month-Over-Month and Year-Over-Year Growth
Compared to November 2023, the year-over-year increase in handle was 16.1%, indicating sustained growth in the state’s sports betting market. Month-over-month performance was also strong. November’s handle outpaced October’s by 8.6%. This marks the third consecutive month in 2024 where Tennessee’s handle exceeded the $500 million threshold, following $524.7 million in September and $551.2 million in October.
Gross tax revenue from the industry also surged in November, hitting $11 million. This new all-time high reflects both higher wagering levels and the efficiency of Tennessee’s tax structure, which generates revenue as a percentage of gross betting handle, set at 1.85%. This steady growth demonstrates the effectiveness of Tennessee’s regulatory framework in creating a sustainable betting environment.
Football Season as a Driving Force
The NFL season plays a critical role in driving betting activity. With football commanding a significant share of handle across U.S. markets, the November record aligns with the busiest months for sportsbooks. The start of the 2024-25 NFL regular season contributed heavily to the rise in wagers, particularly as Tennessee bettors engaged more actively than previous years.
College football has also played a significant part, especially with Tennessee-based teams performing well. Local pride often translates into increased betting activity, as fans place wagers not only on their favorite teams but also on rival matchups. Promotions tied to popular games, such as enhanced odds or risk-free bets, have further incentivized participation during football season.
Market and Operational Context
Tennessee’s sports betting market has only operated online, with no retail sportsbooks allowed. The state currently features 12 active mobile platforms. The market’s top performers include fan favorites like DraftKings, FanDuel, BetMGM, and Caesars. More recent players, including Bally Bet and ESPN BET, have also strengthened the ecosystem. New entries like ZenSports and McLuck continue fostering competitive growth that benefits consumers.
Since launching in November 2020, Tennessee’s sports betting model has shown resilience. While many other states have seen fluctuations in monthly activity, Tennessee has maintained comparatively stable growth. In fact, from July to August, the state experienced a 25.7% month-over-month handle increase, which provided momentum for its record-setting pace in subsequent months. Tennessee’s focus on mobile innovation and user-friendly platforms has been instrumental in its steady growth trajectory.
State Tax Revenue Surges
The tax revenue generated by Tennessee’s sports betting handle has consistently risen alongside the growth in wagers. November’s $11 million in taxes dramatically eclipsed September’s $9.6 million. With wagering laws that prioritize taxing the total betting handle, Tennessee’s revenue structure creates consistent returns for government coffers, even during fluctuating months.
This tax structure, paired with a growing pool of platforms and bettors, has reinforced Tennessee’s market as a dependable driver of state income. The funds generated are directed toward important public services, including education, infrastructure, and community development, showcasing the broader benefits of a thriving sports betting market. The consistent rise in tax revenue also highlights the potential for reinvestment into responsible gambling initiatives to ensure long-term sustainability.
Future Projections and Challenges
Tennessee’s sports betting market shows no signs of slowing down, with projections suggesting continued growth as more platforms enter the scene. Advances in technology, such as AI-driven odds setting and personalized promotions, are likely to further enhance user engagement and retention.
However, challenges remain. As competition intensifies, smaller operators may struggle to maintain profitability, potentially leading to market consolidation. Additionally, responsible gambling initiatives will need to keep pace with market expansion. Increased access and ease of use could result in higher rates of problem gambling, necessitating robust regulatory measures to safeguard consumers. Balancing innovation with regulatory oversight will be crucial for sustaining growth while protecting vulnerable populations.
Conclusion
Tennessee’s sports betting market has reached unprecedented heights, with November 2024 setting new records for handle and tax revenue. The exclusive online model, coupled with strategic innovations and the influence of football season, has cemented the state’s position as a leader in the sports betting industry. By leveraging a competitive market, advanced technology, and consistent regulatory oversight, Tennessee has built a framework that maximizes economic benefits while prioritizing consumer safety. As the market continues to grow, maintaining a balance between expansion and responsible gambling practices will be essential for long-term success. Tennessee’s achievements not only highlight the potential of a well-regulated sports betting market but also provide a blueprint for other states aiming to optimize their gaming landscapes.
By Chris Bates
