Following a shortened month that included just one NFL game, albeit the Super Bowl showpiece, Tennessee has seen its first month-over-month downturn, continuing a national pattern.
The Tennessee Education Lottery reported that bettors placed $176.3 million in wagers as William Hill and TwinSpires joined DraftKings, BetMGM, and FanDuel, which have vigorously fought for market share since launch.
This is down 16.6 percent from $211.3 million in January, and it’s also the lowest handle since the market opened in November.
These wagers pulled in $13 million in net gross revenue, down 40.4 percent from the prior month’s high of $21.8 million. The month of February pulled in $2.6 million in state taxes.
According to TEL numbers, the state’s prosperous February was largely due to the Super Bowl, which provided a nearly $3 million win on more than $15 million in wagering.
Nicole Russo, analyst for PlayTenn.com said: “Even as quickly as Tennessee has grown, this is a reminder that the state is still very much a part of the same sports betting ecosystem that dictates the rest of the US markets.
“Sportsbooks have really done a great job of engaging a sports-crazy population, though. Tennessee’s market has some challenges, but an enthusiastic customer base has a way of overcoming most anything.”
In November, Tennessee set a record for the largest handle for a market in the first full month of online sports betting, but Michigan beat it in February with a total of $301.9 million.
However, February’s results continue Tennessee’s historic start, bringing the state’s total handle to $699.9 million since its November debut, more than any other US industry in its first four months.
Jessica Welman, analyst for PlayTenn.com added: “Even with increased competition from neighbouring Virginia, Tennessee still could close the gap with far more mature markets like Indiana.
“Considering how quickly bettors have embraced online sports betting, there is plenty of reason to believe that the state’s operators will be able to sustain growth even as their early advantages begin to dissipate.”