Tennessee Sports Betting Rose Again in 2025, Casino Legalization Stays Stagnant
The only state in the U.S. that features mobile sports betting - but no casinos and no retail sports betting - is Tennessee.
That has not changed since the gambling debuted in November 2020, and the unique status of online wagering in the state has helped the industry grow significantly each year.
The $5.87 billion wagered in Tennessee in 2025 was up more than 11% over the $5.30 billion risked by gamblers in 2024. And that number was up from $4.30 billion in 2023; $3.85 billion in 2022; $2.73 billion in 2021; and a modest $312.3 million in bets in the last two months of 2020.
The Tennessee Sports Wagering Council since July 2023 also is unique among state regulators in that it imposes a "privilege tax" on sportsbooks at an amount of 1.85% based on betting handle - not on gross gaming revenue. That system replaced the earlier one of a flat, and typical for states, 20% tax on revenue.
That means that the state "wins" in months when the sportsbooks only produce a modest revenue figure, while the sportsbooks benefit when it has a higher-than-usual "hold" on the amount of money wagered. The results overall tend to even out, but it also means that the tax collection numbers are more predictable.
The tax revenue collected goes to education (80%), local government infrastructure (15%), and problem gambling programs (5%). The state collected nearly $100 million in tax revenue in 2024 and again in 2025.
Betting handle in Tennessee topped $600 million for the first time in October 2025, and did so again the following month.
Are casinos on the horizon in the Volunteer State?
Tennessee is a holdout on brick-and-mortar casinos, joining a handful of other U.S. states in that respect.
There does not appear to be any particular appetite for adding that gambling option, either, as there have been no bills introduced in the state legislature of late that would change the status quo.
The Mint Gaming Hall at the Kentucky Downs racetrack is about one hour north of Nashville, Tennessee's largest city. The hall only features "historical horse racing" options, however, which are similar to slot machines.
For a full-fledged casino option with live-dealer table games, Harrah's Metropolis Casino in southern Illinois is about a three-hour drive from Nashville.
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