Is Online Gambling Legal in Tennessee? Understanding the Legal Status

Is online gambling legal in Tennessee?

Tennessee allows online sports betting, state lottery, and charitable gaming like raffle and bingo. However, the state prohibits casino gaming, including brick-and-mortar and online casinos.

Understanding iGaming and online gambling laws vary state-to-state.

Request a Free SEO Audit Today

Our experts specialize in driving high-converting traffic to websites in the iGaming and sports betting industry. Let’s optimize your site for maximum performance.

Get a Proposal

Overview of gambling legislation in Tennessee

As was the case in the whole country, Tennessee initially took a conservative stance against gambling. Of course, Tennessee residents engaged in underground casino gambling and sports betting. But it was in 1987 when state lawmakers started easing up on the restrictions.

Here’s a quick timeline of significant events in Tennessee’s gambling law landscape:

• 1987: Tennessee legalizes horse racing through the Racing Control Act. The Racing Control Act allowed residents to wager on horse racing through a pari-mutuel wagering setup.
• 1994: The Tennessee Education Lottery Corporation (TEL) launches the Tennessee Lottery. Lottery tickets were distributed, with proceeds going to educational programs.
• 2019: The Sports Gaming Act legalized online-only sports betting, making Tennessee the first state to authorize sports wagering without permitting retail sportsbooks.

Let’s dig deeper into Tennessee’s gambling activities below.

Casino gambling in Tennessee

Casino gambling is prohibited in Tennessee, whether land-based or online casinos. Tourists and residents don’t have access to legal casino games within the state borders of Tennessee.

This state does not allow online casinos, slots, roulette, and poker. Moreover, there’s not much traction for legalizing social casinos in Tennessee. There were efforts to restart discussions in 2021, but resort and social casinos are still not permitted.

That said, casino businesses might have to wait before becoming licensed operators in Tennessee.

State lottery and its legality

Lottery games in Tennessee are legal through the operation of the Tennesee Education Lottery Corporation (TEL). The Tennessee Education Lottery Corporation oversees draw games, scratch-off tickets, and multi-state lottery games such as Powerball and Mega Millions.

The money that the TEL profits from the lottery is given to charitable programs. Examples of such initiatives are the Tennessee Hope Scholarship and after-school programs.

Sports betting in Tennessee

The sportsbook business is now allowed to operate in Tennessee. In 2019, the Sports Gaming Act legalized sports betting in Tennesee. The following year, the first sportsbook was finally launched.

Moreover, it’s safe to say that sports betting brings money and cash to the state. Since 2019, the Tennessee sports betting industry has generated a total revenue of $236 million.

Still, the state enforces strict rules on signing up for a sportsbook account. Here are the key considerations:

• Only online sportsbooks are allowed to operate within state lines.
• Bettors must be at least 21 to open an account and bet money.
• Sportsbooks are mandated to comply with tax policies and profitability measures.

Among the approved sportsbooks in Tennessee include DraftKings, BetMGM, and many others.

Expand Your Reach in the Sports Betting Industry

Whether you're launching a sportsbook or optimizing your online presence, our expertise in digital marketing for the gambling industry can help you attract and convert more players.

Get a Proposal

Online gambling and its illegal implications

With the exception of online sports betting, all other forms of online gambling are prohibited in Tennessee. This includes online casinos, live dealer games, poker platforms, and sweepstakes-style casino operations.

Licensed sportsbooks must comply with strict regulatory standards, including:

• Licensing through the Tennessee Sports Wagering Council
• Responsible gambling safeguards and self-exclusion programs
• Age verification (21+)
• Geolocation requirements
• Data security and financial protection standards

Furthermore, anti-money laundering measures should be in place. Businesses must detect accounts associated with laundering money and funds.

Charitable gaming regulations

Tennessee allows residents to play charitable games like bingo and raffle. However, these games must comply with the policies below:

• Charitable games should abide by the law stipulations in Chapter 17 of the Tennessee Code Title 3.
• Businesses operating charitable games should get a non-profit license. This license is issued at the Tennessee Secretary of State office.
• Charities can only host these games after three years of continuous operation. This ensures the authenticity of the organization’s non-profit goals.

The law also limits the prizes and cash that come with these games. Moreover, residents must be physically present and at least 18 years old to play.

Illegal gambling activities and consequences

In Tennesee, people are prohibited from playing in social casinos and offshore games. The law could mandate violators to pay fines or even face imprisonment. Here’s a list of prohibited games and wagers in the Volunteer State:

• Social casinos, including slots, roulette, blackjack, craps, and baccarat
• Online games and casinos, with the exception of sports betting
• Unlicensed or offshore casino games and sports wagering
• Participating in unlicensed or offshore gambling platforms
• Promotions of prohibited casino games, land-based casinos, and other betting platforms

Violators of these policies could lead to legal repercussions. These repercussions include misdemeanors, felonies, asset seizures, and civil penalties. As mentioned before, the state can also mandate violators to pay fines when they play in casinos.

Recent changes and future of gambling legislation in Tennessee

When Governor Bill Lee approved the sports betting act, more discussions were opened for legalization. Although sports betting was legalized in 2019, there has been limited legislative momentum toward approving casino gaming. Any expansion would require substantial political support and likely constitutional changes.

However, not many movements came after the Sports Gaming Act. Until now, online casino games and land-based casinos have not been allowed.

The only legislation signed into law was the Senate Bill 475. Tennessee became the first state to impose a tax on sports betting handles instead of the gross revenue. Tennessee’s handle-based tax structure remains unique compared to revenue-based taxation models used in most other states.

Comparing Tennessee gambling laws to other states

Tennessee remains one of the most restrictive states in the Southeast regarding casino gaming. Unlike Nevada and New Jersey, Tennessee does not permit commercial casinos or online casino platforms. It’s different from other states, as you can see below:

• Nevada: Nevada is one of the states where sports betting is also legal. The state also allows land-based casinos and online casino games like poker.
• New Jersey: Online casinos and sports betting are legal in New Jersey. The state actually generates millions and billions of money and funds through casino activities.

Each state has limited activities and legal constraints. Aspiring operators must work with gambling marketing experts to navigate these casino and gaming laws.

For example, marketing agencies like us provide iGaming and sportsbook assistance. They can help you promote your gambling business without violating any policies.

Partner with Gambling Marketing Experts

Navigate complex gambling laws and boost your iGaming or sportsbook business with our tailored digital marketing solutions. Let us help you grow while staying compliant.

Conclusion:

Tennessee permits online-only sports betting, the state lottery, and regulated charitable gaming. However, casino gaming — both retail and online — remains prohibited.

Any future expansion of gambling in Tennessee would require legislative action and potentially constitutional reform. Businesses operating in the state must ensure strict compliance with regulatory requirements to avoid civil and criminal penalties.