Tennessee collects $4.4m in sports betting taxes in August

The new state tax law came into effect on July 1.

US.- Tennessee collected $4.4m in sports betting taxes in August, a month after the new tax law came into effect. According to the Tennessee Sports Wagering Council, the sports betting handle for the month was $243.4m, the highest August total since the launch of regulated sports betting in November 2020.

Senate Bill 475, changed the tax system for sports betting to tax handle rather than revenue. The only such system in the US, it levies 1.85 per cent on handle. Some 80 per cent of the taxes collected go to education, 15 per cent to the state for distribution to local governments and 5 per cent to mental health programmes.

However, compared to August 2022, the collection was down 8.5 per cent despite a 15.4 per cent increase in the handle.

Other changes in Tennessee sports betting law

The new legislation also replaces the flat $750,000 licence renewal fee for operators with a tiered system, ranging from $375,000 to $750,000 based on operator revenues and eliminates the required 10 per cent hold for sportsbooks. State regulators requested the change after determining that nine of 11 sportsbook operators in Tennessee did not meet the 10 per cent hold requirement in 2022.

The law makes several other changes, including renaming the regulatory agency from the Sports Wagering Advisory Council as the Sports Wagering Council. It faced little resistance, clearing the state House on a 75-7 vote in April and gaining unanimous approval in the state Senate.