Tennessee collected $7.1 million in privilege taxes on mobile sports betting in May, which is nearly $2 million more than the state would have collected under a new tax structure set to begin on July 1.
Tennessee taxes sportsbooks 20% on adjusted gross income for now but will shift to a 1.85% tax on gross wagers starting in July. Over the past two years, most of the state’s sportsbooks were not hitting a 10% profit mark required by the state.
But since a change in accounting regulations of AGI last July, that has shifted and in May the sportsbooks made 12.8% in AGI.
