$572.7 Million Wagered in Tennessee Sports Betting for December

Tennessee’s sports betting market closed the year on a high note, racking up an impressive $572.7 million in wagers during December alone. It seems the festive season had residents of the Volunteer State feeling lucky, with the figure marking a 15.8% increase compared to December 2023’s $495.1 million.

While December’s handle fell slightly short of November’s record-breaking $598.6 million, the month’s strong showing underscores the continued growth and popularity of sports betting in Tennessee. 

The month’s strong performance was driven by heightened engagement around major sporting events and the increasing popularity of regulated betting options. As NoDepositBonus.guide explains, the accessibility and ease of use offered by Tennessee’s digital-only platform have been pivotal to its success. 

A site representative stated, “Tennessee has embraced an innovative approach by focusing entirely on mobile betting, which has proven to resonate with a wide and diverse audience. The December numbers highlight just how much demand exists for convenient, user-friendly sports betting opportunities.”

This record-breaking month signals continued momentum for Tennessee’s sports betting industry. Its unique model sets an example for other states exploring regulated betting markets.

 Contributing Factors 

Tennessee’s sports betting market has been growing steadily since its launch in November 2020. In October, the state set a record with $551.2 million in wagers, marking the third time it surpassed $500 million. This contributed to December’s $10.1 million in tax revenue, a significant increase from the previous month’s $9.6 million. However, there is some uncertainty surrounding $2.9 million in adjustments to the gross handle, as the Tennessee Sports Wagering Council (SWC) has not provided details on their origin. These adjustments could relate to refunds, promotional credits, or data corrections.

With a 20% tax rate on digital sports betting operators, Tennessee’s mobile-only model continues to experience growth, as shown by the $107.4 million increase in wagers compared to the previous year.

December’s success was also boosted by the University of Tennessee football team’s strong performance. Their spot in the inaugural 12-team College Football Playoff generated excitement and attracted sports bettors, even after their 42-17 loss to Ohio State.

 Bovada Exits Tennessee

Bovada’s exit from Tennessee marks a significant turning point for the state’s sports betting industry and a victory for state regulators. The offshore sportsbook, based in Curaçao, shut down its operations in Tennessee after the Tennessee Sports Wagering Council (TSWC) issued several cease-and-desist orders. These orders demanded that Bovada allow users to withdraw their funds and imposed fines totaling $50,000 for operating without a license. Although the fines are unlikely to be collected due to Bovada’s offshore status, the operator complied by closing all Tennessee accounts on November 5 and returning available balances to users.

The TSWC views Bovada’s departure as a major achievement in its efforts to protect consumers and eliminate illegal gambling in the state. Licensed sportsbooks in Tennessee are required to meet strict standards, ensuring secure transactions, personal data protection, and compliance with laws that, among other things, prevent underage gambling. Unlicensed operators like Bovada, however, provide no such safeguards, leaving users vulnerable to risks such as data theft and the potential loss of funds with no legal recourse.

 Crackdown On Unlicensed Sportsbooks

Bovada’s exit is part of a broader crackdown on unlicensed sportsbooks across the U.S. In addition to Tennessee, the operator has also withdrawn from Massachusetts, West Virginia, Pennsylvania, Kansas, and Louisiana, bringing the total to 15 states and the District of Columbia. This trend reflects the growing legal pressure on unregulated gambling platforms as states ramp up enforcement efforts.

Tennessee, the largest online-only sports betting market in the U.S., continues to lead in promoting a safe, regulated wagering environment. Legal sportsbooks in the state generated more than $4.7 billion in wagers last fiscal year. By removing unlicensed operators like Bovada, Tennessee not only protects its residents but also ensures that tax revenue from legal sports betting contributes directly to the state’s economy. As more states take action, the future of offshore sportsbooks operating unchecked in the U.S. appears increasingly uncertain.

Looking ahead, Tennessee’s sports betting market shows no signs of slowing down. With a strong regulatory framework in place and continued growth in both betting activity and tax revenue, the state’s future in the sports wagering industry is promising. Tennessee is well-positioned to maintain its leadership in the digital-only sports betting space, offering a safe and thriving environment for both operators and bettors alike.

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