Interactive
US – Tennessee sportsbooks off to the best start in US history
By Phil - 4 January 2021
Tennessee’s sportsbooks enjoyed the best debut in the history of US legal sports betting, generating more in wagers in the market’s first month than any other state in history.
Tennessee sportsbooks generated $131.4m in handle in November, according to official data released Wednesday by The Tennessee Education Lottery. That is easily the most in the history of US sports betting, shattering Indiana’s former record of $35.2m set in September 2019.
“The best-ever launch for online sports betting is perhaps a surprise to some, but Tennessee also debuted with enormously favorable circumstances, many of which came by design,” said Dustin Gouker, analyst for PlayTenn.com. “First, it debuted in the heart of the NFL and college football seasons in a region that is particularly football crazy. And with the top operators in the country jumping in early to take advantage of the football season in full swing, it was a debut month like no other.”
The money wagered in Tennessee resulted in a “win” of $13.2m, which is also the most in history for a state in its first month of legal sports betting. Those proceeds generated $2.4m in taxes for the state, an impressive total.
To put Tennessee’s debut in context, New Jersey, currently the nation’s largest sports betting market, did not surpass $130m in month until it generated $183.9 million in its fourth month. It took Pennsylvania, the nation’s No. 3 market, 11 months to top that total when it posted $194.5m in September 2019.
“Talk about getting the market off on the right foot,” said Jessica Welman, analyst for PlayTenn.com. “Tennessee is a market with enormous potential but untested, making it difficult to predict how bettors would react to start. By topping the next-best debut by nearly $100m, I’d say that verdict is now in and it is a good one.”
November’s wagers will likely place Tennessee seventh in the US, behind New Jersey, presumably Nevada (which will release November data later this month), Pennsylvania, presumably Illinois (data expected to be released in January), Indiana, and Colorado, which produced a state record $231.2min November.
Four sportsbooks debuted in the first month, including FanDuel and DraftKings — the two largest operators in the US — as well as fellow heavyweight BetMGM, and local sportsbook Action 24/7. At least three more appear ready to launch after the new year, including BetAmerica, WynnBet, and William Hill.
The state’s operators also got a boost from the success of the Tennessee Titans, which is enjoying one of the best seasons in the NFL and has a historically strong offense.
“Local sports matter in legal sports jurisdictions in the US, and a strong NFL team matters more than most, so the Titans success is bound to translate into bets,” Mr. Gouker said. “With its growing list of operators, this is just the start for the market. The next question is when and if Tennessee will challenge Colorado and Indiana in terms of overall market size. It appears sooner than anyone expected.”
