Tennessee Enters Legal Sports Betting with a Record $131m Handle

Sports fans in Tennessee spent an average of over $4 million every day in November when legal sports betting was officially introduced in the state for the very first time. According to figures that have were published yesterday by the state’s gaming ombudsman, the Tennessee Education Lottery (TEL), bettors spent a combined total of $131,444,523 last month.

Mind you, this winning streak started right off the bat as the Volunteer state saw a handle of over $27 million for the first week of entry into the world of regulated sports betting. Owing to the winning trend that continued throughout the rest of the month, sports bettors bagged a total payout of $118.2 million. Operators on the other hand accrued $13 million in profits which obviously is another record figure for the first month of sports betting in any state. Overall, the month’s activity generated $2.4 million worth of taxes for the state

Thanks to such a tremendous performance, Tennessee comfortably recorded the best-ever debut for a legal online sports betting market since the PASPA was repealed in May 2018. The previous first-month record had been set by Indiana in September 2019 when bettors wagered a total of $35 million after the launch of regulated sportsbooks in the state.

Looking at other legal sports betting jurisdictions in the state, the likes of New Jersey which is currently the champion of sports betting in the country, matched Tennessee’s first-month handle after hitting its 4th month in the sports betting business. Of late, however, the Silver State has been blowing past monthly sports betting records consecutively and is well on its way to racking up a historic 10-figure handle from monthly sports wagers in a single month. Pennsylvania on the other hand is currently ranked as the third-largest sports betting market after New Jersey and Nevada took nearly one year (11 months) to get to where Tennessee is in its first month!

Making Sense of Tennessee’s Record Shattering First Month

Indeed, the November numbers of the Volunteer State are stellar for the first month. No question about that. However, if we take a back seat and take a closer look at how the state got there in the first place, you’ll notice that Tennessee was uniquely positioned to succeed right out of the gate. To put that into context, you first have to put three things into consideration; the timing of the launch, the state’s geographical position, and its favorable sports betting regulation.

For one, the Volunteer state’s entry into the world of sports betting was timed perfectly, given that November was right as the center of the post-pandemic season resumption of the National Football League (NFL) and collegiate football. This means that the sports betting debut came when the industry is in its busiest time of the season. Better yet, the fact that this season has been one of the best seasons of the state’s NFL team, the Tennessee Titans, the excellent performance of the team encouraged locals to place even more bets.

Moving on to the state’s geographical position, Tennessee is situated in a region that’s well known as a home for American football enthusiasts. So, it’s obvious that bettors would go all-in on the wagers after the market was opened up when their favorite sport has an attractive slate of betting options. When it comes to the law, the Volunteer state introduced regulated sports betting with an allowance for mobile sports betting. Of all the 7 neighboring states surrounding Tennessee, none of them has launched legal sports betting except for Mississippi and Arkansas. And neither Mississippi nor Arkansas allows mobile sports betting, locals in those two states can only place sports wagers in retail sports betting shops.

All those circumstances proved to offer the Volunteer state a rare trifecta that paved its way to the largest first-month handle in history. The record will surely be hard to top for any other state that legalizes sports betting in the future.

The True Test for Tennessee’s Sports Betting Performance is Coming

If anything, the blazing start for Tennessee in its first month of sports betting showed how important it is to include a mobile sports betting option not only for placing wagers alone but also for creating betting accounts, when drafting the laws.

While announcing the November figures, Rebecca Paul Hargrove, the TEL president, and CEO expressed her excitement in the state’s impressive sports betting debut and its future potential by saying;

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“Our first month of sports wagering in Tennessee comes at a unique time in the world, let alone the sports world… November’s figures include adjustments and indicate potential…As this new industry in Tennessee evolves, we will continue to work with licensees and registrants in support of a responsible and competitive sports wagering program.”

Come January 2021 however, Tennessee will be facing a different ball game as Virginia, a neighboring state will be dipping its feet in the world of sports betting, meaning more competition. While we can’t exactly say how stiff the competition from Virginia will be, things will get thicker in the future as the wave of sports betting legalization continues to spread. Bettors from surrounding states will stop going to Tennessee after getting a home-grown sports betting solution.