Is Sports Betting Legal in Tennessee? Comprehensive Guide to Tennessee Sports Betting Laws

Yes, sports betting has been legal in Tennessee since November 1, 2020. Tennessee was the first state in the USA to approve an online-only sports betting model. This means there are no physical sportsbooks, and bets can only be placed via websites and mobile apps of licensed operators.

Understanding Tennessee Sports Betting Laws

The Professional and Amateur Sports Protection Act (PASPA) of 1992 effectively banned sports betting across the United States, with a few exceptions like Nevada. However, in May 2018, the U.S. Supreme Court struck down PASPA, opening the door for individual states to legalize and regulate sports betting within their jurisdictions. Tennessee took this opportunity, and in June 2019, the legalization of sports betting became a reality.

Sports Betting Legalization in Tennessee

Tennessee is one of the states that approached sports betting proactively. As early as 2016, Governor Bill Haslam signed the Fantasy Sports Act, which officially legalized fantasy sports betting in Tennessee.

However, residents of Tennessee had to wait for a real breakthrough until the U.S. Supreme Court overturned PASPA, allowing states to legalize sports betting.

Without waiting long, in 2019, bills legalizing sports betting were introduced in both chambers of the Tennessee state legislature. After lengthy discussions and negotiations, in April, the House of Representatives passed the bill with a 58-37 vote, and the Senate agreed to adopt the bill with amendments by a 19-12 vote.

Everything seemed to be going according to plan until the final version of the bill landed on the desk of Governor Bill Lee, who opposed expanding gambling in the state. He refused to sign the bill but chose a compromise between his interests and the decisions of the House and Senate, allowing the bill to become law without his signature.

The law took effect on July 1, 2019, officially legalizing sports betting in Tennessee.

Licensing and Regulation

After legalizing sports betting, it was time to start working on the final shape of regulations defining how this area would function in Tennessee. These regulations were approved by the Tennessee Education Lottery Corporation (TELC) almost a year after the new laws came into effect.

Developing the regulations enabled the launch of the legal sports betting market in Tennessee on November 1, 2020.

With the market launch, Tennessee became the first state in the USA to introduce sports betting exclusively in an online model, without the possibility of placing bets at physical locations.

Regulators opened the door to full competition in the online market and did not limit the number of licenses available to operators. The state does not limit the number of companies that can operate in its market.

However, the condition for anyone applying for a sports betting license in Tennessee is to pay a non-refundable application fee of $50,000, and upon obtaining the license, fulfill an annual licensing fee of $750,000.

Initially, Tennessee decided to tax operators’ revenues at 20%, but in 2023, exactly three years after legalization, the state switched to a turnover tax model. Currently, 1.85% of all wagers placed by players with commercial operators go to the state budget.

Although the range of available types of bets is quite broad, the state decided to partially limit them by banning bets on individual athletes and live betting on collegiate sports. This is dictated by concern for the interests and well-being of particularly young athletes. In Tennessee, bets on political events are also illegal.

Responsible Gaming Measures

The state of Tennessee offers many programs and resources promoting responsible gambling. The goal is to ensure a safe and healthy gaming environment for everyone.

The Tennessee REDLINE was launched, a free, confidential hotline available 24/7 at 800-889-9789. Here, you can get help finding resources and treatment for gambling addiction.

The Problem Gambling Treatment Services Program was also initiated, aiming to increase awareness of problem and pathological gambling among at-risk individuals, their families, and the general public.

In addition to state resources, all licensed online bookmakers in Tennessee are legally obliged to offer responsible gambling tools. These tools enable players to:

• Set deposit limits, betting amounts, and time spent on the platform
• Initiate time-out periods from gaming
• Access account history information, including past bets and money spent

Players can also use the self-exclusion program to block themselves from all online betting platforms in Tennessee. They can do this by filling out a short online form and submitting a photo of their driver’s license. Alternatively, they can print the self-exclusion form, fill it out, and mail it along with a copy of their driver’s license to the Tennessee Sports Wagering Council.

How to Bet on Sports Legally in Tennessee

Residents of Tennessee who wish to start their sports betting adventure must first decide on choosing an operator that meets their needs.

Review the offerings of available online bookmakers in Tennessee and choose the one that suits you best. Pay attention to the welcome bonuses offered, types of bets, odds, and the functionality of the mobile app.

Legal Operators in Tennessee

Currently, there are 11 legal online sports betting operators in Tennessee, licensed by the Sports Wagering Council:

• Action 247
• Bally Bet
• Betly
• BetMGM
• Caesars
• DraftKings
• ESPN Bet
• Fanatics
• FanDuel
• Hard Rock Bet
• ZenSports

In July 2024, SuperBook officially ended its operations, which was one of the legal operators in Tennessee.

Is bet365 Available in Tennessee?

bet365 is not currently available in Tennessee. Although the operator is available in 10 other states, including North Carolina and Kentucky, there is currently no information about plans to launch in Tennessee.

How to Create an Account with a Sports Betting Operator

If you have already made a decision regarding your choice of sports betting operator, you can proceed to the registration process. First, you need to access the operator’s platform. Most of them offer both mobile apps (for Android and iOS) and web platforms. You can visit the operator’s website to find a link to download the app or search for it in the Google Play Store or App Store.

On the website or in the app, select the “Register” or “Create Account” button. You will then need to provide your personal information, such as your full name, email address, date of birth, residential address, and phone number.

Operators are legally obliged to verify your identity to prevent fraud and money laundering, so you may also be asked to provide the last four digits of your Social Security Number (SSN).

1. On the operator’s website, click the “Register” or “Create Account” button.
2. Provide the required personal information:
   • Full name
   • Date of birth
   • Residential address
   • Phone number
3. To create an account, also provide your email address.
4. Verify your identity with your SSN.

To create an account, you must be at least 21 years old, and to place bets, you must be within the state’s borders. You don’t have to be a resident, but operators use geolocation services to prevent people located in other states from placing bets with legal operators in Tennessee.

How to Bet?

After setting up an account, you can make your first deposit and often take advantage of welcome offers provided by operators. Once your account is funded, you are ready to place your first bet.

What Types of Bets Can You Place in Tennessee?

In Tennessee, you can place a wide variety of bets on different sports and events, both professional and collegiate. The availability of specific types of bets may vary depending on the operator. Some popular betting options include:

• Moneyline (Winner Bets): You bet on which team or athlete will win a given event.
• Point Spread: The bookmaker sets a point difference between teams, and you bet whether the favorite will win by more points than the spread or if the underdog will lose by fewer points than the spread.
• Over/Under Bets (Total Points): The bookmaker sets the predicted total points in a game, and you bet whether the actual total will be over or under that number.
• Live Bets: You place bets during the event, with odds changing dynamically based on the game’s progression.
• Parlays: You combine several bets into one, increasing the potential payout but also the risk.
• Prop Bets: You bet on specific events during the game, e.g., who will score the first basket

What Sports Can You Bet on in Tennessee?

Residents of Tennessee have the opportunity to bet on many sports disciplines, both at the professional and collegiate levels. Regarding professional competitions, some of the most popular options include:

• NFL
• NBA
• NHL
• MLB
• MLS
• NASCAR
• Golf
• Soccer
• UFC

At the college level, you can bet on events like NCAA Football and NCAA Basketball. However, for college teams, you cannot place live bets or bets on individual athletes’ statistics.

Famous Sports Teams in Tennessee

Tennessee is home to several well-known sports teams, both professional and collegiate. Among professional teams, we can mention:

• Tennessee Titans (NFL): An American football team based in Nashville. They joined the NFL in 1997 after relocating from Houston. The Titans’ biggest success was reaching the Super Bowl in their third season after the move.
• Nashville Predators (NHL): An ice hockey team playing in the NHL since 1998. The Predators have made the playoffs 15 times, and in 2017, they lost in the Stanley Cup Final to the Pittsburgh Penguins.
• Memphis Grizzlies (NBA): A basketball team playing in the NBA since 2001 when they moved from Vancouver to Memphis. The Grizzlies regularly make the playoffs.
• Nashville SC (MLS): A new soccer team that joined MLS in 2020. They play at the largest soccer-specific stadium in the USA, Geodis Park.

Well-known collegiate teams include:

• University of Tennessee Volunteers (NCAA): Representing the University of Tennessee in Knoxville, they have a rich history in collegiate sports. The Volunteers won the national championship in football in 1998, in baseball in 2024, and their women’s basketball team won eight championship titles between 1987 and 2007.
• Memphis Tigers (NCAA): Representing the University of Memphis, they compete in NCAA Division I.
• Vanderbilt Commodores (NCAA): Representing Vanderbilt University in Nashville.

Online Sports Betting in Tennessee

We already know that online betting in Tennessee is legal and that we can place bets on a range of different disciplines, both professional and collegiate, with 11 different operators. Let’s take a closer look at what they offer on their websites and mobile apps.

Several operators have attractive welcome promotions for new customers, as well as a range of additional promotions for regular players.

Bet $5, Get $150 at FanDuel

FanDuel offers players a promotion where, after placing their first $5 bet, they have a chance to receive $150 if their bet wins. It’s important to remember that bonus funds cannot be withdrawn immediately and can only be used for further play.

Additionally, every customer who creates an account with FanDuel will receive 3 months of free NBA League Pass.

$1,500 in Bonus Bets at BetMGM

New BetMGM customers can take advantage of a promotion where they have a chance to receive up to $1,500 in bonus bets. After registering with the operator, simply place your first bet. If it loses, the player’s account will be credited with a bonus equal to the amount wagered.

The minimum qualifying deposit to receive the bonus is $10, and bonus bets are valid for 7 days from receipt.

$150 in Bonus Bets at DraftKings

To take advantage of DraftKings’ promotional offer for new players, you need to deposit at least $5 into your account and then place your first bet of at least $5. Regardless of the outcome of the bet, you will receive $150 in six bonus bets from DraftKings.

Bonus bets must be placed within 7 days (168 hours) of receipt; otherwise, they will expire.

Other Bonuses for New Players

Almost every operator operating in Tennessee has a welcome offer for new players and offers additional promotions to regular customers. These change over time, but most often, new players can expect bonus funds or bonus bets that they can use on the operator’s platform.

Bookmakers often boost odds on selected bets, such as combined bets or player bets. You can receive greater returns if your bet wins thanks to the increased odds.

At operators, you will also find loyalty programs where, by using a specific brand’s offer, you can accumulate points and eventually exchange them for certain benefits.

Taxation of Sports Betting Winnings in Tennessee

In Tennessee, sports betting winnings are subject to taxation. The IRS treats online gambling winnings as taxable income and requires players to pay tax on these winnings.

Most bookmakers in Tennessee do not send a W-2G tax form unless winnings exceed approximately $5,000.

The standard tax rate on sports betting winnings is 25% of profits if you provide your SSN. Not providing your SSN may result in 28% of profits being withheld for tax purposes.

Sports betting operators in Tennessee pay a 1.85% tax on handle. The 1.85% tax rate for sports betting operators in Tennessee has been in effect since July 2023. Previously, the tax was 20% on gross revenues.

Future of Sports Betting in Tennessee

The future of sports betting in Tennessee looks bright. Although there is currently no information about additional operators who might enter the state with their product, it is highly probable that the number of operators licensed in Tennessee will grow over time.

Tennessee has been recording steady growth in sports betting revenues since legalization. This trend will likely continue in the future and entice more companies to try their luck, especially given that Tennessee does not have a license limit. Those interested in entering a new market don’t have to hurry, as there’s room for everyone.

The online-only model might limit access to this form of entertainment for older individuals or those without internet access. However, nowadays, most bets are placed online anyway, so from the perspective of the largest operators on the market, the lack of retail locations isn’t a significant problem.

Nevertheless, DraftKings has expressed interest in opening a physical location in Nashville, which could help launch retail betting in the state.

FAQs About Sports Betting in Tennessee

Can I bet on sports in person in Tennessee?

No, Tennessee currently allows only online sports betting. There are no physical sportsbooks.

Is daily fantasy sports legal in Tennessee?

Yes, daily fantasy sports are legal and regulated separately from sports betting.

What is the legal betting age in Tennessee?

You must be at least 21 years old to participate in sports betting.

Can I bet on college sports in Tennessee?

Yes, but with restrictions. In-play prop bets on individual college athletes are prohibited.

Are my winnings taxable?

While Tennessee does not tax gambling winnings, they are subject to federal taxes.

Is bet365 available in Tennessee?

bet365 is not currently available in Tennessee, and there is no information about a planned launch.

Sports betting is legal in Tennessee, offering residents and visitors the opportunity to engage in online wagering on their favorite sports. With a variety of licensed operators and a straightforward registration process, getting started is easy. However, it’s essential to bet responsibly and be aware of the state’s specific regulations.