MEMPHIS, Tenn. — Tennessee took a gamble by being one of the first states in the country to approve legalized online sports betting. And so far, it seems to be meeting expectations.
We learned in November, the first full month of online sports betting, sports books raked in $131 million.
The state lottery, which oversees the program, reported that sports books made $118 million in gross payout on winning bets. That translates into about $2.5 million dollars in tax revenue – 80% of which goes into an education account for college scholarships. The rest will be split between local governments and gambling treatment programs.
Lawmakers who support the measure expect the state could get $50 million in tax revenue every year from online sports betting.
It's ironic that one of the last states to get a lottery is at the front of the line this time. But especially in hard times, state governments are very worried about revenue, and anything they can do without raising taxes is a winning bet.