Legal Status of Sports Betting in Tennessee
Sports betting in Tennessee became officially legal on November 1, 2020, following the passage of legislation in 2019. Unlike many other states, Tennessee operates as an online-only sports betting jurisdiction, meaning there are no physical sportsbooks or in-person betting venues. All sports wagering must be conducted through state-licensed online platforms and mobile applications. The Tennessee Education Lottery initially oversaw the industry, but regulatory authority has since been transferred to the Sports Wagering Advisory Council (SWAC).
Licensing and Regulation
The Sports Wagering Advisory Council is responsible for issuing licenses, enforcing compliance, and ensuring fair gaming practices. Operators must meet stringent requirements regarding responsible gambling, secure financial transactions, and transparency in odds setting. Licensed sportsbooks in Tennessee are required to hold substantial financial reserves and comply with specific taxation and revenue-sharing models.
Available Online Sportsbooks
Tennessee hosts several major sports betting operators, each providing extensive betting markets, competitive odds, and promotional incentives. Leading platforms include:
- FanDuel Sportsbook – Offers a wide range of betting options and user-friendly features.
- DraftKings Sportsbook – Known for its competitive odds and diverse prop bets.
- BetMGM – Provides comprehensive sports coverage, including live betting.
- Caesars Sportsbook – Features loyalty programs linked to its nationwide casino network.
- Barstool Sportsbook – Appeals to younger audiences with a social media-driven approach.
Each operator provides mobile apps compatible with both iOS and Android devices, along with browser-based platforms.
Betting Options and Sports Coverage
Tennessee sportsbooks offer wagering opportunities across professional leagues, college sports, and international events. Bettors can access:
- Moneyline Bets
- Point Spreads
- Totals (Over/Under)
- Parlays and Teasers
- Prop Bets
- Live/In-Play Betting
While most sports are permitted, certain restrictions apply. For example, prop bets on individual college athletes are prohibited to maintain integrity in amateur sports.
Taxation and Revenue Allocation
Sportsbook operators in Tennessee are subject to a 20% tax on adjusted gross income from betting activities. Revenue from sports betting is allocated as follows:
- 80% to the state’s education fund
- 15% to local government infrastructure projects
- 5% to responsible gambling programs
This taxation structure is designed to maximize public benefit while maintaining a sustainable betting market.
Responsible Gambling Measures
Tennessee’s regulatory framework emphasizes player protection and responsible gaming. Licensed sportsbooks must provide:
- Self-exclusion options
- Deposit and betting limits
- Access to problem gambling helplines
- Educational resources on responsible play
The SWAC actively monitors compliance to ensure operators meet these standards.
Future Outlook
The Tennessee sports betting market has grown rapidly since its launch, with monthly handle figures consistently exceeding hundreds of millions of dollars. Industry experts anticipate further expansion as more operators enter the market and as betting products evolve to include innovative wagering formats and enhanced live betting features.
Summary
Sports betting in Tennessee operates under a strictly regulated, online-only model, offering residents access to major national sportsbook brands without physical betting locations. With strong regulatory oversight, a wide variety of betting options, and a tax framework that supports public programs, Tennessee has positioned itself as a significant player in the U.S. sports wagering industry.
