Tennessee Sports Bettors Wagered over $460 Million in April

Bettors in the Volunteer State were busy in April. 

The Tennessee Sports Wagering Council has reported a sports betting handle of $463.6 million for the month of April. This number is down compared to March, but up by 21.7% year-over-year. With Tennessee’s 1.85% privilege tax on the handle, around $8.5 million in tax revenue is projected.

While numbers for individual operators have not been released, FanDuel and DraftKings continue to dominate the Tennessee Market.

Tennessee Market Still Thriving

Tennessee launched online sports betting in 2025. They were one of the first states in the southeastern US to legalize the industry, making it a popular destination for bettors around the region. 

Since then, neighboring North Carolina, Kentucky, and Arkansas have launched legal markets of their own. While that kept many out-of-state bettors from crossing into Tennessee to place bets, it hasn’t prevented the market from thriving five years after going live.

Missouri is set to launch legal sports betting on December 1, but the small border with the Volunteer State means the impact should be minimal. 

With Georgia still unable to gain momentum on legalizing sports betting, it seems the Tennessee market should remain strong in 2026 and beyond. 

Tax Revenue Distribution Could be Changing

Sports betting has continued to thrive in the state, but the same cannot be said for the Tennessee Education Lottery (TEL). It experienced a steady decline in 2025, with revenue on pace to drop by more than 10%. 

The Lottery’s struggles are leading some lawmakers to sound the alarm. They fear that legal sports betting will continue to shrink revenue for the TEL, which uses its tax revenue to help fund construction projects for schools across the state. While revenue from the sports betting industry also contributes to the state’s education system, it doesn’t cover construction.

Some lawmakers have begun to call for a change to the distribution of tax revenue from the sports betting industry to include construction costs. This change would still send the revenue to schools, just for a different cause. 

Ohio Considers Following Tennessee’s Lead

Tennessee broke new ground in 2023 when it decided to ditch its 20% flat tax rate on operators in favor of a 1.85% privilege tax. This is a smaller rate, but it is assessed to the handle for online sportsbooks. That means the tax is assessed based on the total number of wagers a platform has taken in, excluding factors such as winnings paid out, voided bets, and so on.

Ohio has recently proposed adding a similar tax to help boost tax revenue from the industry. The state’s failure to raise its flat rate had them scrambling for alternative solutions, leading them to look to Tennessee.