Tennessee Adjusts Online Sportsbook Accounting Requirements, Leading to Increase in Taxes Collected on Earnings

Sep 20, 2022 | Political News

After Executive Director Mary Beth Thomas and the Tennessee Sports Wagering Council took over the management of online sports betting in the state to start 2022, Thomas vowed to review how sportsbooks were reporting their earnings and therefore paying taxes.

That accounting review led to changes, starting July 1, in how those earnings are reported and how the taxes are calculated. And, while the changes are subtle, they already are making a difference in Tennessee’s bottom line.

Despite a summer sports betting lull, Tennessee collected $4.9 million in taxes on $206 million in wagers in August, getting toward a 2% return that one board member referenced to Thomas in the group’s September meeting.

“I do believe that the accounting and reporting changes that we implemented July 1, that has shown this increase in revenue in these July numbers,” Thomas said. “I’m pleased with that and hope to see it continue.”