- Tennessee sportsbooks took $588.6 million in September, up 4.9%, producing $10.9 million in privilege taxes.
- Tennessee collected 1.85 cents per dollar bet for the second straight September, while Massachusetts and New Jersey swung with hold.
- New Jersey’s taxes fell 17.7% on 3.6% less betting, while Massachusetts’ jumped 36.1% on 3.4% less.
NASHVILLE, Tenn. – Tennessee doesn’t have to worry about who wins on Sunday. The Tennessee Sports Wagering Council’s September report shows sportsbooks took $588.6 million in bets, up 4.9% from last year. Tennessee’s taxes rose by the exact same 4.9% to $10.9 million.
That’s no coincidence.
Since July 1, 2023, Tennessee has taxed 1.85% of every dollar bet instead of 20% of what sportsbooks keep. Signed by Gov. Bill Lee in May 2023, Public Chapter 450 also bars sportsbooks from deducting winning payouts or promotional bets.
The result is a tax bill that moves with betting, not with bettors’ luck. And September showed why Tennessee sports betting got it right.
In New Jersey sports betting, completed-event handle dipped 3.6%, but taxes fell 17.7% from $19.1 million to $15.7 million. Football was the problem. The New Jersey Division of Gaming Enforcement’s September report shows sportsbooks kept just 1.3% of $318.8 million in football bets, dragging revenue down 14.3%.
Massachusetts went the other way. The Massachusetts Gaming Commission’s September report shows handle slipped 3.4%, but taxes jumped 36.1% to $14.2 million as hold climbed from 6.8% to 9.4%.
Same Rate, Every Month
Both states tax roughly 20% of sportsbook revenue, so their collections rise and fall with every lucky or unlucky weekend. Measured per dollar bet, Tennessee collected 1.85 cents in both Septembers, while the others swung:
- Tennessee: 1.85 cents in 2025 and 2026
- Massachusetts: 1.3 cents to 1.8 cents
- New Jersey: 1.7 cents to 1.4 cents
In other words, Massachusetts sports betting needed a 9.4% hold just to match Tennessee.
Through nine months, Tennessee has collected $80.4 million in taxes on $4.34 billion in bets, both up about 9% from the same stretch of 2025.
