Tennessee sports wagering tax collections have not risen as fast as wagers
(The Center Square) – Tennessee sports wagering taxes have not risen at the same rate as the amount of sports wagers but the tax collections are up nearly $2.5 million year over year for the first 11 months of the state’s fiscal year.
Tennessee has collected $81.3 million on $4.4 billion of gross wagers through the first 11 months of the fiscal year compared to collecting $78.7 million on $3.7 billion of wagers through the first 11 months of last fiscal year.
Tennessee’s Sports Wagering Council has already surpassed the $78.8 million in projected privilege taxes collected this year after collecting $82.1 million last fiscal year.
Overall, the state has collected $234.7 million of privilege tax on $13.3 billion of sports wagers since the state began legalized sports wagering in November 2020.
This fiscal year, the state has averaged collecting $7.4 million in monthly privilege tax on $402 million of gross wagers compared to $7.2 million of privilege tax on $340 million in monthly wagers last fiscal year.
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 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 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.
