Sports betting generates $236M for Tennessee since legalization in 2019

NASHVILLE, Tenn. (WKRN) — It’s been five years since Tennessee lawmakers rolled the dice and passed a bill legalizing online sports wagering, and since then, more than $13 billion gross wagers have been made with nearly $240 million of that money going back into the state.

Before the law passed making sports betting legal, lawmakers said an estimated $3 billion was being illegally wagered in the state. The law legalizing sports wagering established protections for consumers and a way for Tennessee to cash in on sports entertainment.

“We already have billions of dollars that leave the state going to other states that have casino gambling, so here’s a chance to do in-state sports betting that would capture dollars,” Rep. Rick Staples, (D-Knoxville) told News 2 in late 2018.

After sportsbooks went live in Nov. 2020, there were already millions of dollars in wagers being made, according to the executive director of the Tennessee Sports Wagering Council, Mary Beth Thomas.

“Since that time, we have seen growth in both the number of participants and the volume of betting,” Thomas said. “Tennesseans are clearly enjoying sports betting.”

At last check, there were around 1.5 million open betting accounts in Tennessee, and more than $13.25 billion in gross wagers made.

Nearly $240 million of that money, called the privilege tax, has been reinvested back into the state. Eighty percent of the money funds the HOPE Scholarship, 15% goes to local governments for infrastructure projects and emergency services, and 5% goes to the TN Dept. of Mental Health for responsible gaming initiatives and treatment.

“That provides a lot of scholarship money and a lot of help to local governments that would like a boost to their funding for important projects that they have,” Thomas said.

While the economic impact of sports wagering is apparent, another goal in legalizing sports betting was to ensure consumers are protected and the sportsbooks licensed through the state are following the rules.

Thomas told News 2 the recent audit of the Tennessee Sports Wagering Council by the Comptroller’s Office was clean with no findings, which is proof the state’s regulations on sports wagering are working.

“I think that Tennessee has done a great job at balancing the interest in sports wagering and our need to regulate it in a fair and transparent manner so that Tennesseans have comfort that the sportsbooks that are licensed by the state of Tennessee are adhering to the law and doing the right thing,” Thomas said.

Sportsbooks that advertise are required to include gambling addiction resources in their ads. That could include the Tennessee REDLINE or 1-800-GAMBLER. In addition, the service, self-exclusion allows gamblers to voluntarily opt out of gambling, either temporarily or permanently, by filling out a form through the Tennessee Sports Wagering Council or through a sportsbook.

Thomas added the University of Memphis Gambling Clinic is another option where patients struggling with gambling addiction can receive treatment through telehealth or in-person appointments.