One of the new kids on the US legal sports betting block, Tennessee is out with their March handle and revenue figures and they reveal just how dependable the platform has been since launch November 1. Despite being America’s only online-only sports betting platform, Tennessee sportsbooks continue to post more-than-respectable numbers.
The Tennessee Education Lottery (TEL) is reporting a slight uptick in betting action for the state for March, after a predictable February dip. The much-anticipated March Madness tournament aided Tennessee’s overall bounce back and helped the state approach but not quite reach a record for sports betting in the state.
The Figures
The legal sports betting industry of Tennessee generated $205.9 million in bets in March, which a 16.8% increase from February’s $176.3 million and just $5.4 million short of the record-$211.3 million the state’s sportsbook took in during the busy month of January.
The increase in the March handle from February’s is tied to three main figures. Obviously, March Madness was the biggest factor but the fact that there were three more days in the March and one more full weekend of betting action made it inevitable for a Tennessee bounce back.
Adjusted gross income for the Tennessee March betting scene came in at $16.1 million – a 23.6% increase from February. This after factoring in gross payouts of $187.9 million which is 15.1% or $24.6 million higher than the state saw in February.
Tax revenues for Tennessee state and local coffers were reported to be $3.2 million – a 23.1% increase from February’s $2.6 million.
Hiccups
Tennessee’s legal sports betting industry endured a little controversy in March. The State’s Lottery became the first so far in the entire US scene to suspend a provider citing the fact that they “failed to monitor and report substantial criminal activity on the site.”
Homegrown sportsbook Action 24/7 gained the unenviable honor of becoming the first provider to be suspended, after their lack of oversight contributed the possible money laundering, fraud, and bettors using proxy accounts in the state.
Action 24/7’s license has since been reinstated but the sportsbook was out of action from March 18-26.
William Hill, a new addition to the Tennessee legal sports betting scene in March also had an issue with regulators. Word out of the state is that the sportsbook posted an illegal prop bet on their site that went against regulations. No punitive damages have been identified and the prop bet was quickly taken down by the sportsbook.
The sportsbook transgressions in Tennessee may have a silver lining. They gave lawmakers in the state an opportunity to find a way to help the Tennessee Education Lottery in its regulatory duties. SB 588 may eventually pave the way for a nine-person Sports Wagering Advisory Committee to aid in decision making around Tennessee’s sports betting platform, including regulation and discipline if necessary. It will now be up to the Tennessee House of Representatives to either pass or amend the Senate’s plan.
Where Tennessee Stands
The Tennessee legal sports betting scene has been strong since its launch November 1. There had been detractors at the time that cited lawmakers’ choice of a Lottery model, a controversial online-only platform and the fact that the platform launched so quickly as reason for concern.
Tennessee sportsbooks have seemingly shrugged off any potential concerns and has produced solid and consistent betting handles. The industry that has thrived went from four providers (BetMGM, the two DFS giants, and Tennessee Action 24/7) to six during March. William Hill joined the Tennessee family March 11 and TwinSpires launched March 19 – both in time for March Madness.
April will be the first month that all six will be able to take bets in the state and should provide regulators with a good idea of just where its online-only platform stands and where it could improve.
With six top-tier operators, with the MLB season starting to generate a little more buzz and with the NBA and NHL winding down their seasons, April’s betting menu is full and waiting on bettors to take full advantage. All eyes will be on Tennessee’s April figures and just how a full month of its market expansion will affect its overall monthly figures.
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