Tennessee collected $87.6M in sports wagering taxes for fiscal year

(The Center Square) – Tennessee finished the fiscal year collecting $87.6 million in privilege tax, an increase of $4.3 million from the fiscal year that ended in June 2023.

The increase came despite projections that the state would see a drop to $78.8 million after a change to the state’s sports wagering tax structure.

Tennessee levies a 1.85% tax on gross handle, which replaced a 20% tax on adjusted gross income that was in place until July 2023.

Tennessee had $345 million in gross wagers in June along with $6.3 million in privilege tax.

That’s up from $230 million in gross wagers and $4.6 million in privilege tax collected in June 2023.

Tennessee sends 80% of taxes to the Lottery for Education program, 15% to the state’s general fund and 5% to gambling disorder and addiction programs.

Tennessee stopped reporting the adjusted gross income of the state’s collective sportsbooks in July 2023 and does not report data from individual sportsbooks.

Tennessee is the only state with legalized sports wagering that does not report how much the sportsbooks make on bets monthly.