Tennessee raised $ 32.5 million in sports gambling tax revenue in its first 11 months of operation, said Andy Davis, director of financial and information systems for the Tennessee Education Lottery.
Sports betting was not part of the presentation of Davis’ FY2023 budget proposal on Tuesday to Governor Bill Lee and others, as the program will move and report to the new Sports Betting Advisory Board of the ‘Status Jan. 1.
Davis said 80% of tax revenue from sports gambling goes to education, 15% goes to the state for distribution to local governments, and 5% goes to mental health programs.
âWe are only a regulator until Dec. 31 for this program,â Davis said.
In September, $ 257 million in bets were placed on online sportsbooks in Tennessee; a record amount that averages $ 8.6 million bets per day in September, compared to $ 4.7 million bets per day in August.
Sports betting generated $ 3.3 million in tax revenue in September.
âAs impressive as September has been, the Tennessee sports betting market has not nearly reached its potential,â said Eric Ramsey, analyst for the PlayUSA.com network, which includes PlayTenn.com. âThe baseball playoffs and the return of the NBA, coupled with a full month of the NFL, should push Tennessee forward again. Records will continue to drop over the next few months.
The previous record was $ 211.3 million in bets in January.
The Sports Betting Advisory Council is holding initial meetings to set the rules, with a meeting of the rule-making committee scheduled for 1 p.m. on Friday, and the board to meet at 11 a.m. on November 9.
One topic of discussion is a 10% limit on the amount that sportsbook can keep in bets, called a holdback. The books took a total of $ 25.6 million, which represented a 9.9% holding, in September; 93.9% more than the $ 13.2 million in August.
âFootball is unique in the way it motivates punters, and sports betting has received a bit of help with decent starts in September by the Titans and Volunteers,â said Nicole Russo, analyst for PlayTenn.com. “With local interest in the Atlanta Braves and the start of the Grizzlies season adding to the mix, October should take sports betting to another level.”