NASHVILLE, Tenn. (WKRN) — Sports wagering isn't just a gamble on the game. It's a guaranteed win for the programs and people pocketing the proceeds.

The General Assembly passed the Tennessee Sports Gaming Act, which legalized sports wagering in the state, in 2019. Sportsbooks went live across the Volunteer State the following year.

“What this piece of legislation is doing — more so than anything — is looking to capture dollars that we can put to good use in the state of Tennessee," former State Rep. Rick Staples (D-Knoxville), who sponsored the bill that made sports wagering legal, said.

In the five years since sports betting has been legal in Tennessee, it has generated $345 million in privilege tax, which is from the 1.85% tax on bets, which is then divided among three initiatives within the state.

With every sports bet made in the state, 15% of the privilege tax from sports betting goes to local governments for infrastructure projects and emergency services, and 5% goes to the Department of Mental Health and Substance Abuse Services for addiction services. Up until July 1, 2025, 80% of the privilege tax went to educational initiatives, including the HOPE Scholarship and Tennessee Promise.

However, during a 2025 special legislative session, lawmakers passed the Education Freedom Scholarship Act, or the school voucher program, which redirected 80% of the privilege tax from sports betting to building and maintaining public schools.

So far, sports betting has generated $17 million for addiction services, $52 million for local governments and $276 million for educational scholarships.

In July 2025 alone, there were more than $305 million in gross wagers made, which generated more than $5.5 million in privilege tax, according to a report from the Tennessee Sports Wagering Council.

The revenue continues to grow year-over-year as more people place bets across the state.

“From FY23 to FY24, there was a 20% increase in wagering activity. From '24 to '25, there was an 18% increase in wagering activity. Already in the first month of the current fiscal year, we’re 10% above the previous month of July '24," David Smith, the director of engagement for the TN Sports Wagering Council, said.

Smith told News 2 it's difficult to predict when bets might slow down. Until then, the benefits of sports wagering go beyond those making the bets. The real winners are the people and programs seeing the proceeds put to work.

“If people are wagering for entertainment as something to have a little fun with, that’s great, and the state is able to capture some revenue that goes to these causes," Smith said. "Whether it’s affecting your local hometown, or it’s affecting now your local high school or middle school with new construction and maintenance, or whether it’s going back to the Department of Mental Health to help fund responsible gambling initiatives and programs, it’s like I said with the $276 million, it’s more than what the state was otherwise getting, so it’s a good thing.”

News Source : https://www.wkrn.com/special-reports/sports-wagering-generates-millions-programs/