Tennessee’s sports betting market soared to new heights in March 2025, registering a record-breaking handle of $548.6 million, according to the Tennessee Sports Wagering Council. The surge represents a significant 16.2% year-on-year growth and a 32.7% increase from February 2025’s figures, underlining the continued momentum of legal sports wagering in the Volunteer State.
March Madness Drives Betting Boom
The sharp uptick is widely attributed to the NCAA’s March Madness tournament, a major driver of seasonal wagering activity. With Tennessee hosting regional games and strong regional interest in college basketball, sportsbooks saw heavy action across both mobile and online platforms. Historically, March Madness has been one of the most bet-on sporting events in the U.S., and 2025 was no exception.
Strong Tax Revenue and Market Resilience
The council reported collecting $10.1 million in privilege tax revenue for March, further solidifying sports betting’s growing role in Tennessee’s economy. Since the launch of regulated online-only betting in November 2020, the state has leaned on tax income from wagering to fund education, infrastructure, and responsible gaming programs.
Interestingly, the adjusted gross wagers stood at $551.8 million before accounting for approximately $3.2 million in undisclosed deductions. This aligns with the national trend of rising bettor engagement, particularly among younger demographics who prefer app-based, real-time betting options.
A Steady Market with Room for Growth
Tennessee continues to operate under a unique regulatory framework. It is one of the few U.S. states with no retail sportsbooks and a 20% tax on adjusted gross income. Despite these constraints, its market has remained competitive, boasting more than a dozen active operators, including FanDuel, DraftKings, and BetMGM.
As major sporting events like the NBA Playoffs and MLB season continue, Tennessee’s betting handle is expected to remain strong. Analysts predict that the market could approach $5.5 billion in annual handle by the end of 2025 if the current pace holds.
Tennessee’s performance underscores how well-regulated, mobile-first betting ecosystems can thrive even without brick-and-mortar locations—setting a national benchmark in the evolving U.S. gaming landscape.
