In a recent government meeting, key discussions centered around the Tennessee Student Assistance Corporation (TSAC) and the Tennessee Sports Wagering Council, highlighting the financial landscape of education funding and sports betting in the state.

Tim Phelps, Senior Director for Grants and Scholarship Programs at TSAC, presented an overview of the estimated expenditures for lottery-funded programs, projecting a gradual increase in eligible recipients and scholarship renewal rates through the 2028-29 academic year. Phelps emphasized the importance of understanding enrollment data to inform future funding strategies, although no questions were raised by the committee members.

Following this, Mary Beth Thomas, Executive Director of the Tennessee Sports Wagering Council, provided insights into the state's sports betting operations. Since the legalization of sports wagering in 2019 and the establishment of the regulatory body in 2022, Tennessee has seen significant growth in the sector. Currently, there are 12 licensed sportsbooks and 59 registered vendors, with sports betting generating revenue through a 1.85% privilege tax on total wagers. Notably, 80% of this tax revenue is allocated to the lottery for education, 15% to local infrastructure projects, and 5% to the Department of Mental Health.

Thomas reported that licensed sportsbooks have accepted approximately $14.6 billion in wagers since their inception, with a 7% increase in privilege tax revenue year-over-year. However, she cautioned that the growth rate may slow down due to increased competition from neighboring states that have also legalized sports betting.

The council is actively monitoring wagering patterns, revealing that around 1 million accounts belong to Tennessee residents, with an additional 250,000 accounts from out-of-state individuals. Thomas noted that the average wager ranges from $10 to $150, with a median of $5 to $30, indicating that many bettors are engaging in relatively low-stakes wagering.

Looking ahead, the council anticipates a 5% growth in total wagers, driven partly by efforts to eliminate illegal offshore sportsbooks, which currently account for an estimated 30% of wagering dollars. The meeting concluded with a commitment to continue tracking and analyzing data to ensure the integrity and growth of the sports betting market in Tennessee.