Tennessee Sportsbooks See Over $300M In February Wagers

• Sportsbooks in Tennessee handled $313.3 million in February, the fifth consecutive month Tennessee sportsbooks handled at least $300 million in wagers.
• Despite the solid handle figure, Tennessee’s sportsbooks recorded their lowest hold rate and revenue total since December 2020 in February.

NASHVILLE, Tenn. – Despite turning over a respectable $313.3 million handle in the month of February, Tennessee’s sportsbooks recorded their second-worst monthly revenue since launch.

Tennessee Sees Lowest Revenue, Hold Figures Since December 2020

Of the $313.3 million in total February sports betting handle, sportsbooks in Tennessee held just 6.7% of wagers for a low $20.9 million revenue figure, according to a report released by the Tennessee Sports Wagering Advisory Council.

Both the revenue and hold figures were Tennessee’s lowest since December 2020.

Like many other legal sports betting markets in the United States, Tennessee also saw their February sports betting handle drop nearly 20% compared to January.

However, February’s handle was still Tennessee’s fifth-largest to date and represents a massive 77.7% increase compared to February 2021.

Sportsbook operators reported nearly $6 million in promotional payments, down slightly from January.

Tennessee’s adjusted revenue came to $15.13 million; with Tennessee taxing adjusted sports betting revenues at a 20% clip, this led to over $3 million in state tax payments.

High Hold Rate Key To Tennessee’s Recent Success

Despite the relatively down month, Tennessee’s sportsbooks have performed incredibly well since launching in 2020. February marked the fifth consecutive month in which sportsbooks of Tennessee brought in a sports betting handle of at least $300 million.

The largest difference between February and prior months with more gaudy revenue totals was the hold percentage. In January, Tennessee sportsbooks held 9.39% of wagers; this led to over $36 million in revenue.

For December, the hold rate was 7.2%, which brought in $24 million in revenue. The sportsbooks held an impressive 10.09% of wagers in November for $36.9 million in revenue.

Tennessee Sportsbooks Expecting Huge March

Expect Tennessee’s total handle, revenue, and hold figures to each increase in March. This is in no small part due to March Madness betting, one of the top attractions at online sportsbooks.

The unpredictable nature of March Madness usually buoys hold rates, which should lead to a very solid revenue figure when combined with the expected handle spike in March.

Additionally, there is no real concern that Tennessee’s dip in February revenue will become a trend; this is because handles and revenues were down nationwide in February, primarily as a result of a smaller betting slate. The 77.7% increase in year-over-year handle increase is a more telling statistic.

News tags: March Madness | Tennessee | Tennessee Sports Wagering Advisory Council