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.

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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:

• 2002/2004: Voters approved a constitutional amendment in November 2002 to allow a state lottery. The Tennessee Education Lottery Corporation launched ticket sales in January 2004, with proceeds directed toward education programmes including the Tennessee HOPE Scholarship.
• 2019: The Sports Gaming Act legalized online-only sports betting, making Tennessee the first state to authorize sports wagering without permitting retail sportsbooks.
• 2023: Tennessee became the first U.S. state to switch from a revenue-based tax to a handle-based tax on sports betting. From July 2023, licensed operators are taxed at 1.85% of total wagers placed, rather than 20% of gross gaming revenue.

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. As of 2026, there are no active legislative proposals to legalise casino gaming in Tennessee. Any change would require significant legislative support and likely a constitutional amendment.

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.

Proceeds from the Tennessee Education Lottery fund education programmes, including the Tennessee HOPE Scholarship, which provides college financial aid to qualifying students, as well as after-school and early childhood learning initiatives.

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. Tennessee’s sports betting market has grown significantly since launch. In 2024 alone, bettors wagered more than $5.2 billion across the state’s licensed online sportsbooks.

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 must comply with state tax obligations and regulatory standards set by the Tennessee Sports Wagering Advisory Council (SWAC), including responsible gambling requirements and data reporting.

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

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Regulatory Requirements for Licensed Sportsbooks in Tennessee

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

Licensed operators must also maintain anti-money laundering controls, including procedures to detect and flag suspicious account activity.

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.

Tennessee also permits charity poker tournaments under the same licensing framework, provided the organising nonprofit meets all eligibility requirements.

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
• 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

Tennessee’s sports betting market has matured significantly since the 2019 Sports Gaming Act. The most notable regulatory change came in 2023, when Senate Bill 475 made Tennessee the first U.S. state to switch from a revenue-based to a handle-based tax. Licensed operators are now taxed at 1.85% of total wagers, giving the state a predictable revenue stream regardless of operator profit margins.

In 2025, the Tennessee Sports Wagering Council introduced new compliance rules covering multifactor authentication and responsible gambling standards. Regulators also cracked down on unlicensed platforms, issuing fines against offshore operators and ordering sweepstakes casino platforms to cease operations in the state. In January 2026, Tennessee regulators ordered prediction market platforms including Kalshi and Polymarket to stop offering sports-related contracts in Tennessee.

On the casino front, there has been no meaningful legislative movement toward legalising retail or online casino gaming. Any expansion would require significant political support and likely a constitutional amendment.

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.
• South Carolina: Tennessee’s legal online sports betting market stands in sharp contrast to neighbouring South Carolina. If you are wondering is gambling legal in South Carolina, the short answer is that all forms of sports wagering remain illegal there. Both states ban casino gambling, but Tennessee’s licensed online sportsbook market gives residents far more legal betting options than those across the border.

A useful regional comparison is North Carolina, which launched online sports betting in March 2024 and operates under a more commercially open framework. Unlike Tennessee, North Carolina permits betting on college sports with some restrictions, and its market includes a broader pool of licensed operators.

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

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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.