Tennessee collected a total of $4.6 million in sports gambling taxes on $230.3 million from sports wagers in June, the final month before a new system for sports gambling taxes in the state begins.
Under the new system on sports gambling taxes, Tennessee would have only received $4.1 million in sports gambling taxes.
$4.1 million in sports gambling taxes would be the Tennessee’s lowest sports gambling taxes collection since July 2022 and the lowest in gross total wagers since August 2022.
With less sports option, Tennessee has had a drop in sports gambling numbers yearly during the summer months but it has then increased as college football season is set to begin in September.
Analyst Dru James stated that compared to June 2022, the gross income was nearly 81% up again and is a great sign for sustained market stability.
James also stated that for an established market like Tennessee, the adjusted gross income is slightly lower than normal which is 35%. He added that other states, like Tennessee, are experiencing the same thing this slow season.
After a 20% tax on adjusted gross income, Tennessee now imposed 1.8% sports books tax on total gross wagers.
The collected money in sports gambling taxes will appropriated on the state.
Even though the same amount in sports gambling taxes was collected, the total wagering was down from the $370 million wagers in March, Penchanga.net says.
The state of Tennessee collects 20% of net operator revenue of the industry in sports gambling taxes.
The collected money out of sports gambling taxes will be appropriated in two three parts;
- 80% of the collected sports gambling taxes go to education
- 15% of the collected sports gambling taxes go to the state for distribution to local governments
- 5% of the collected sports gambling taxes will be appropriated to mental health programs.
READ MORE: Tennessee collects $4.6M in sports gambling taxes in June
