Tennessee’s new system for taxing sports wagering will begin July 1. The move comes a year after the state’s Sports Wagering Advisory Council sent notice to sportsbooks it would be adjusting the way it counted adjusted gross income.
The new taxing structure will collect a 1.85% tax on gross wagers placed in the state instead of the former 20% tax on AGI.
Had the new tax been in place since wagering began in November 2020, the state would have collected $154 million compared to the $142 million it has collected.
But those numbers have changed in recent months. In April, for example, the state collected $6.4 million but would have collected just $5.9 million under the new system.
