The amount was 16.8% higher than $176.3m in February and just 2.6% shy of the $211.3m record set in January, according to figures published by the Tennessee Education Lottery.
Players won a total of $187.9m from sports betting in March, resulting in $16.1m in adjusted gross revenue for the month, up 23.9% from $13.0 in February.
The state was also able to collect $3.2m in tax from sports wagering during the month.