Sports Betting in Tennessee: A Comprehensive Guide
Legal Framework and Launch
Tennessee legalized sports betting through the Sports Gaming Act, which passed in May 2019 without the governor’s signature. Unlike most states, Tennessee’s sports betting market is unique in that it is 100% online, with no physical sportsbooks or casinos permitted. The first legal bets were placed on November 1, 2020, marking the official launch of regulated online sports wagering in the state.
Regulatory Authority
The Tennessee Sports Wagering Advisory Council (SWAC) oversees and regulates the industry. Initially, the Tennessee Education Lottery was responsible for regulation, but oversight transitioned to the SWAC in early 2022. The Council ensures compliance with licensing, integrity, and operational standards to protect both operators and bettors.
Licensed Sportsbooks in Tennessee
Tennessee has attracted several major online sportsbook operators, providing a competitive and consumer-friendly environment. Popular sportsbooks include:
- FanDuel Sportsbook
- DraftKings Sportsbook
- BetMGM
- Caesars Sportsbook
- Hard Rock Bet
- SuperBook
- Fanatics Sportsbook
These platforms offer extensive markets across all major sports including NFL, NBA, MLB, NHL, college football, and basketball.
Mobile-Only Market
Tennessee’s mobile-only model is the first of its kind in the U.S. There are no brick-and-mortar casinos or sportsbooks in the state, meaning all sports betting is done via smartphones, tablets, or desktop browsers. This approach caters to tech-savvy users and encourages widespread adoption without needing in-person registration or casino visits.
Taxation and Revenue
The state initially implemented a 20% tax on gross gaming revenue. However, in 2023, Tennessee revised its taxation model to a 1.85% tax on total handle (the amount of money wagered), replacing the previous revenue-based tax. This new structure aims to stabilize tax revenue and simplify reporting. The funds collected are distributed to education, local governments, and initiatives to prevent and treat problem gambling.
Unique Requirements and Controversies
Tennessee originally mandated a 10% minimum hold requirement for sportsbooks, meaning operators had to retain at least 10% of all wagers as revenue. This was an unusual and controversial regulation in the U.S. market, as it often forced operators to offer less competitive odds. In 2023, the state moved away from the hold requirement, aligning more with industry norms.
Other restrictions include:
- No betting on individual college player props
- Geolocation technology required to verify bettors are within state lines
- Strict age requirement of 21 years and older
Responsible Gambling Measures
Tennessee enforces a number of responsible gambling measures. Operators must display resources for problem gambling and allow self-exclusion tools. The SWAC maintains a self-exclusion list and monitors operator compliance. Public awareness campaigns are also part of the state’s broader strategy to mitigate the risk of addiction.
Popular Sports and Betting Trends
NFL betting is particularly popular in Tennessee, especially on the Tennessee Titans. College football also draws major action, particularly on teams like the University of Tennessee Volunteers. Basketball betting surges during NBA season and March Madness. Tennesseans frequently bet on:
- Point spreads
- Totals (over/under)
- Moneyline
- Parlays
- Live/in-play betting
Future Outlook
Tennessee’s mobile-only, open-competition sports betting model continues to evolve. The market shows strong growth, with increasing monthly handle and new operators seeking licenses. As regulatory frameworks stabilize and consumer education grows, Tennessee is poised to remain one of the most progressive and dynamic betting markets in the U.S.
Conclusion
Sports betting in Tennessee is a trailblazer in the U.S., embracing a fully online approach with competitive operators, unique regulatory policies, and strong revenue generation. Whether you’re a seasoned bettor or new to wagering, Tennessee offers a streamlined, accessible, and legal way to engage with your favorite sports.
