States / Tennessee
Tennessee
- Tennessee legalized online-only sports wagering on July 1, 2019, with no retail sportsbooks, casinos or pari-mutuel racing industry.
- The Sports Wagering Council regulates the market, and a 2023 law replaced the income tax with a 1.85% tax on handle.
- Tennessee has been aggressive against prediction markets and sweepstakes casinos, and the Sixth Circuit sided with the state against Kalshi in September 2026.
More detail
- Sports betting. Tennessee legalized online-only sports wagering effective July 1, 2019, under the Tennessee Sports Gaming Act. It has no retail sportsbooks, no commercial or tribal casinos, and no pari-mutuel or historical-horse-racing industry.
- Regulation. Regulation moved from the Tennessee Education Lottery Corporation to the newly created, independent Sports Wagering Council (SWC) effective January 1, 2022.
- Taxes. A major 2023 law (Public Chapter 450) replaced the original 20%-of-adjusted-gross-income privilege tax with a unique 1.85%-of-handle tax. It also added a new tiered annual license-fee structure.
- Prediction markets. Tennessee was one of the most aggressive states against CFTC-registered sports event-contract platforms. The SWC ordered Kalshi, Polymarket and Nadex to cease offering sports-event contracts (Jan. 2026). Kalshi won a district court preliminary injunction (Judge Trauger, Feb. 2026). On September 25, 2026 the Sixth Circuit (KalshiEX LLC v. Orgel, No. 26-5235, consolidated with the Ohio case KalshiEX LLC v. Schuler, No. 26-3196; opinion by Senior Judge Gibbons) vacated that injunction. It held Kalshi had not shown its contracts are CFTC-exempt "swaps". It also held the Commodity Exchange Act would not preempt state law even if they were. Separately, a 2026 law (SB 1992) made it a felony to try to influence a prediction-market event's outcome for financial gain.
- Online casinos and sweepstakes. A 2026 law (SB 2136/HB 1885) banned dual/multi-currency "sweepstakes casino" platforms as an unfair or deceptive practice under the Tennessee Consumer Protection Act. Gov. Lee signed it May 22, 2026, effective immediately. It followed AG cease-and-desist letters that had already pushed roughly 39 platforms to restrict Tennessee access.
- Fantasy sports. Fantasy sports (including pick'em formats) are licensed by the SWC under the separate Tennessee Fantasy Sports Act.
- Charitable gaming. Nonprofit "game of chance" fundraising events are governed by the Tennessee Nonprofit Gaming Law (Tenn. Code Ann. §§ 3-17-101 to -116). The Secretary of State's Division of Charitable Solicitations and Gaming administers it.
Reviewed Oct 10, 2026 · 26 sources
Legal status
LiveLegal, not launchedLimitedContestedProhibitedNot authorizedRepealedNA
| Vertical | Status | Launched | Model | Details |
|---|---|---|---|---|
| Sports (online) | Live | Nov 2020 | Competitive | Legalized via Public Chapter 507 (signed/allowed to become law without the Governor's signature, effective 7/1/2019); regulated initially by the Tennessee Education Lottery Corporation with SWC in an advisory role, then transferred to the independent Sports Wagering Council effective 1/1/2022 (Public Chapter 593). 13 operators were licensed as of February 5, 2024. Launch date inferred from the council's earliest monthly revenue reports (November 2020). Tenn. Code Ann. Title 4, Chapter 49, Part 1 (Tennessee Sports Gaming Act), as amended by 2023 Pub. Ch. 450 [1],[2] |
| Sports (retail) | Not authorized | Tennessee is the only major sports-wagering state with an online-only market; no statute authorizes retail/in-person sportsbooks. Tenn. Code Ann. Title 4, Chapter 49, Part 1 (Tennessee Sports Gaming Act) [1],[3] | ||
| Online casino | Not authorized | No iGaming statute; Tennessee has no commercial casino industry.[3] | ||
| Online poker | Not authorized | [3] | ||
| Commercial casinos | Not authorized | Tennessee is not among the states with commercial casinos; no statute authorizes land-based casino gaming.[4] | ||
| Tribal casinos | Not authorized | Tennessee is not among the states with Native American gaming facilities; no federally recognized tribe operates a compacted casino in the state.[4] | ||
| Lottery | Live | Monopoly State | Tennessee Education Lottery Corporation operates the state lottery (draw games, scratch-offs).[1] | |
| iLottery | Limited | Jan 2025 | Monopoly State | Tennessee Education Lottery launched the "TN iLottery" app in January 2025, selling draw-game tickets online (reported scope ranges from Powerball-only to Powerball/Mega Millions/Cash4Life/Lotto America/select daily draw games across sources) with no official press release; the Lottery maintains existing law already permits it to sell tickets directly and accept non-cash payment, unlike retailers. Players must be 18+ and physically in Tennessee. No source found describing e-instant (digital scratch-style) games sold online; scratch-offs remain retailer-only, so marked limited rather than fully operational.[5],[6] |
| Daily fantasy | Live | Competitive | Fantasy sports operators must submit a Fantasy Sports Operator Application to the SWC and undergo third-party compliance audits; implementing rules at Tenn. Comp. R. & Regs. 1350-05. Tenn. Code Ann. Title 4, Chapter 49, Part 2 (Tennessee Fantasy Sports Act) [7] | |
| VGTs / VLTs | Not authorized | [4] | ||
| Historical horse racing | Not authorized | [4] | ||
| Sweepstakes casinos | Prohibited | Legalized May 22, 2026 | Law signed by Gov. Lee 5/22/2026, effective immediately upon signing ("This act takes effect upon becoming a law, the public welfare requiring it"). Bans promotional platforms using a "virtual currency, dual-currency, or multi-currency system" to let users play online slots/casino-style games for cash-equivalent prizes; treats continued operation as an unfair/deceptive practice under the Tennessee Consumer Protection Act, with civil penalties up to $15,000/violation plus consumer damages and a Class B misdemeanor criminal penalty. Followed AG cease-and-desist letters that reportedly led ~39 platforms to already restrict Tennessee access before the bill passed. 2026 Pub. Ch. (SB 2136/HB 1885) [8],[9] | |
| Prediction markets | Contested | The Sports Wagering Council issued a January 2026 order naming Kalshi, Polymarket, and Nadex and directing them to cease offering sports-event contracts without an SWC license. Kalshi obtained a preliminary injunction from U.S. District Judge Aleta Trauger (M.D. Tenn., Feb. 2026) blocking enforcement. On September 25, 2026 the Sixth Circuit (KalshiEX LLC v. Orgel, No. 26-5235, decided together with the Ohio case KalshiEX LLC v. Schuler, No. 26-3196; unanimous opinion by Senior Judge Julia Smith Gibbons) vacated the Tennessee injunction and remanded, holding Kalshi had not shown its sports event contracts meet the Commodity Exchange Act's "swap" definition (the link to economic consequences must be "intrinsic," not merely an indirect effect on leagues, sponsors or local businesses) and that the Act would not preempt Tennessee's sports-wagering law even if they were swaps. This is the second federal appellate ruling against Kalshi's preemption theory (after the Ninth Circuit, for Nevada, in Aug. 2026); the Third Circuit sided with Kalshi in a New Jersey case, and New Jersey petitioned the U.S. Supreme Court on 9/2/2026 to resolve the circuit split (Kalshi's response due 11/9/2026). Separately, 2026 SB 1992 made it a Class E felony to attempt to influence a prediction-market event's outcome for financial gain (1-6 years, fines up to $3,000). Status marked contested given the case was remanded, not finally resolved, and the litigation is ongoing.[10],[11],[12],[8] | ||
| Skill games | Prohibited | A Shelby County Chancery Court three-judge panel ruled in July 2025 against Torch Electronics, holding that its "No Chance Games" machines (found in gas stations and convenience stores) are illegal gambling devices under Tennessee law, rejecting the manufacturer's arguments that the games involve sufficient skill to fall outside the gambling definition and that the statute is unconstitutionally vague; this in-force ruling supports enforcement actions against grey machines across the state. No subsequent reversal or appellate ruling was identified in this research pass.[13] | ||
| Card rooms | Not authorized | [4] | ||
| Lottery couriers | Not authorized | No Tennessee statute or TELC rule expressly authorizes or bans third-party lottery courier services. The Tennessee Education Lottery Implementation Law is read by TELC as authorizing only the Lottery itself (not retailers or outside apps) to sell tickets online/electronically and accept non-cash payment; legislators (Rep. William Lamberth: "there's been no bill that's gone through here to allow for online lottery sales") dispute even that, and a March 2025 industry regulatory review counted Tennessee among ~40 states with no law expressly permitting or prohibiting couriers. No licensed courier (Jackpocket, Lotto.com, Jackpot.com) currently lists Tennessee as an operating state. Previously inferred solely from Jackpocket's roster; downgraded to a corroborated but still non-statutory basis per audit. Status kept not_authorized because no authorization exists, per the "no ban found" rule not applying in the opposite direction (absence of authorization = not_authorized, not operational).[14],[15] | ||
| Pick'em fantasy | Live | Competitive | The Fantasy Sports Act and SWC licensing framework are not described as distinguishing daily/season-long peer-to-peer formats from pick'em/player-vs-house formats; both appear to fall under the same operator-licensing regime. Tenn. Code Ann. Title 4, Chapter 49, Part 2 (Tennessee Fantasy Sports Act) [7] | |
| Pari-mutuel | Not authorized | Tennessee has no live horse or dog racing industry with pari-mutuel wagering.[4] | ||
| Advance deposit wagering | Not authorized | [4] | ||
| Charitable gaming | Live | Monopoly State | Qualifying 501(c)(3)/501(c)(19) nonprofits may hold one "game of chance" fundraising event per annual event period (July 1-June 30, after a Jan. 31 application deadline on Form SS-6069, $10 fee), administered by the Secretary of State's Division of Charitable Solicitations and Gaming. Continuous-existence requirement in Tennessee is stated as 5 years by secondary compliance guides; the SOS's own FAQ language (not independently fetched, sos.tn.gov blocked) was reported elsewhere as 3 years with statutory exceptions, so this detail is flagged as unresolved between sources rather than asserted. Reported prize caps: $250,000 for a single-location event (real property exempt) and $150,000 for a multiple-location event. Violations can lead to disqualification or civil penalties after notice and a right to an administrative hearing. Tenn. Code Ann. §§ 3-17-101 to -116 (Tennessee Nonprofit Gaming Law, renamed by 2015 Pub. Ch. 134/SB 325 from the 'Charitable Gaming Implementation Law') [16] | |
| Esports betting | Live | Competitive | Esports wagering is offered by licensed sports wagering operators under the Sports Gaming Act framework (consistent with other SWC-regulated "sporting events" wagering); not separately itemized in sources reviewed.[1] | |
| Social casino | Live | Competitive | Tennessee's 2026 sweepstakes-casino ban (SB 2136/HB 1885, see sweepstakes_casino) targets virtual-currency systems that can be exchanged for cash or real-world prizes; its sponsor, Sen. Ferrel Haile, stated on the record that "this bill does not make free games illegal. It primarily targets operation for real money that is being used." No Tennessee statute, AG action, or enforcement action restricts free-to-play social casino apps with no cash-redeemable prize; such apps are treated as operational nationally, consistent with the research guide's default for this vertical.[17] |
Sports betting in Tennessee: status, tax rate, sportsbooks and bills →
Tax rates
| Vertical | Channel | Rate | Base | Tier | Promos deductible | Since | Statute |
|---|---|---|---|---|---|---|---|
| Daily fantasy | online | 6% | AGR | No | Jul 1, 2016 | Tenn. Code Ann. §§ 67-4-901 to -905 (Tennessee Fantasy Sports Act, 2016 Public Chapter 1006 / SB 2109) Privilege tax on adjusted revenue (entry fees minus prizes awarded), paid by the operator, not players; distinct from and separately administered from the Sports Wagering Council's 1.85% handle tax on sports betting. Signed by Gov. Haslam April 27, 2016, effective July 1, 2016; originally administered by the Secretary of State, oversight later moved to the Sports Wagering Council for licensing while the Dept. of Revenue still collects the tax. [18] | |
| Pick'em fantasy | online | 6% | AGR | No | Jul 1, 2016 | Tenn. Code Ann. §§ 67-4-901 to -905 (Tennessee Fantasy Sports Act) Same 6% privilege tax as classic DFS above; the Fantasy Sports Act and Dept. of Revenue guidance do not distinguish pick'em/player-vs-house formats from traditional season-long/daily fantasy contests. [18] | |
| Sports (online) | online | 1.85% | HANDLE | Jul 1, 2023 | Tenn. Code Ann. Title 4, Chapter 49, Part 1, as amended by 2023 Public Chapter 450 'Public Chapter 450 changed the privilege tax to 1.85% of an operator's gross handle.' Handle defined as the total amount of dollars wagered that a sportsbook has accepted from its bettors. SWC collected ~$93 million total from taxes and fees in FY2023. [1] |
Historical rates
| Vertical | Rate | Base | Period | Notes |
|---|---|---|---|---|
| Sports (online) · online | 20% | AGR | Jul 1, 2019 – Jun 30, 2023 | 'Before July 1, 2023, each operator was required to pay a privilege tax of 20% of its adjusted gross income.' Adjusted gross income was defined as total bets collected minus total amount paid out to winners over a specified period.[1] |
Rules and requirements
Advertising
- Summary of advertising/marketing restrictions
- SWC maintains a 'List of Approved Toll-Free Numbers for Advertising' for operators; specific content restrictions not confirmed beyond this.[1]
Casinos
Legislation
- Summary of significant pending gambling legislation this session
- 2023 Public Chapter 450 (effective 7/1/2023) substantially restructured the SWC's tax and fee framework; no other pending 2025-2026 legislation verified in this research session.[1]
License fees
- Sports wagering license fee(s) and term
- Application fee: $50,000 (nonrefundable, credited toward the license fee). First-year license fee: $750,000 flat. From the second year onward (post-7/1/2023 structure): $375,000/year if prior 12-month gross wagers were under $100 million, or $750,000/year if $100 million or more. Prior to 7/1/2023 the annual renewal fee was a flat $750,000 for all operators.[1]
- Supplier/vendor license fee summary
- Vendor registration (new as of Public Chapter 450, effective 7/1/2023; vendors paid no fee before this): $150,000 for the initial 3-year registration period for all vendor types. Second/subsequent 3-year periods, by service type: geolocation/platform software/player account management $150,000; risk management/oddsmaking/sports data $75,000; independent testing lab $45,000; KYC/payment processing $30,000. Payable in equal annual installments.[1]
Minimum age
- Minimum age to place a sports wager
- 21'In Tennessee, individuals 21 years of age and older may wager online on approved sporting events...'[1]
Notes
- Free-text notes that fit no other field
- A follow-up research pass resolved charitable gaming (operational), the sweepstakes-casino ban (prohibited, 2026 SB 2136/HB 1885), and independently re-verified the Sixth Circuit's Kalshi ruling against the court's own case names/docket numbers and the precise decision date (Sept. 25, 2026, not the Sept. 28 AG press-release date used in an earlier draft). Lottery couriers, skill games, and social casino remain unknown: sos.tn.gov still blocks automated fetches and no fetchable AG/legislative source specific to those three topics was located.[1]
Prediction markets
- Summary of the state's action against sports event contracts (C&D
- SWC ordered Kalshi/Polymarket/Nadex to cease sports-event contracts (Jan. 2026); Kalshi won a district court injunction (Trauger, Feb. 2026) blocking enforcement; the Sixth Circuit vacated that injunction and remanded on September 25, 2026 (KalshiEX LLC v. Orgel, No. 26-5235, with KalshiEX LLC v. Schuler, No. 26-3196), holding Kalshi had not shown its sports-event contracts are CFTC-exempt "swaps" and that the Commodity Exchange Act would not preempt Tennessee's sports-wagering law regardless. Litigation remanded, not finally resolved as of Oct. 2026.[10],[12]
Sports betting rules
- Wagering on college sports allowed at all
- YesApproved league events include 'certain seasonal and post-season awards, and certain collegiate awards.'[1]
- Esports wagering allowed
- Yes[1]
- Online sports wagering available statewide (not tethered to premises)
- Yes[1]
- Any per-wager fee/tax (e.g. Illinois 2025 per-bet tax) summary
- No per-bet tax; the state instead taxes handle directly at 1.85% (see tax_rates) rather than imposing a separate per-wager fee.[1]
Tax revenue
- Where gaming tax revenue goes (education fund
- Licensing fee revenue funds SWC operating/administrative expenses first, with remainder to the Tennessee Promise Scholarship endowment fund ($7,600,289.75 submitted in FY2023). Privilege tax revenue: 80% to the Lottery for Education Account, 15% to the state General Fund, 5% to the Dept. of Mental Health and Substance Abuse Services (for problem gambling/gambling disorder programs, secondarily juvenile addiction/mental health). Violation fines fund SWC education/outreach programs and investigation expenses.[1]
Revenue
Tax revenueMonthly · Sports (online)
Monthly3-month average
$5.0M$10.0M$15.0M202120222023202420252026Online sports tax 20% → 1.85%Oct 2025 $12.1M$7.9M
| Vertical | Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|---|---|---|
| Sports (online) | GGR | $203M | $340M | $199M | ||||
| Sports (online) | Handle | $3.8B | $5.9B | $5.3B | $4.3B | $3.9B | $2.7B | $312M |
| Sports (online) | Tax paid | $69.5M | $108M | $97.2M | $83.6M | $68.1M | $39.3M | $5.4M |
Sports (online)Monthly GGR
Monthly3-month average
$20.0M$40.0M$60.0M202120222023Dec 2022 $47.0M$30.3M
What these figures mean
- Sports (online): GGR is the report's "Adjusted Gross Income" line, printed only until mid-2023. Tax paid is the privilege tax assessed (20% of adjusted gross income until mid-2023, then 1.85% of handle).
Revenue report sources (70)
- TN Monthly Sports Gaming Report (2020-11)
- TN Monthly Sports Gaming Report (2020-12)
- TN Monthly Sports Gaming Report (2021-01)
- TN Monthly Sports Gaming Report (2021-02)
- TN Monthly Sports Gaming Report (2021-03)
- TN Monthly Sports Gaming Report (2021-04)
- TN Monthly Sports Gaming Report (2021-05)
- TN Monthly Sports Gaming Report (2021-06)
- TN Monthly Sports Gaming Report (2021-07)
- TN Monthly Sports Gaming Report (2021-08)
- TN Monthly Sports Gaming Report (2021-09)
- TN Monthly Sports Gaming Report (2021-10)
- TN Monthly Sports Gaming Report (2021-11)
- TN Monthly Sports Gaming Report (2021-12)
- TN Monthly Sports Gaming Report (2022-01)
- TN Monthly Sports Gaming Report (2022-02)
- TN Monthly Sports Gaming Report (2022-03)
- TN Monthly Sports Gaming Report (2022-04)
- TN Monthly Sports Gaming Report (2022-05)
- TN Monthly Sports Gaming Report (2022-06)
- TN Monthly Sports Gaming Report (2022-07)
- TN Monthly Sports Gaming Report (2022-08)
- TN Monthly Sports Gaming Report (2022-09)
- TN Monthly Sports Gaming Report (2022-10)
- TN Monthly Sports Gaming Report (2022-11)
- TN Monthly Sports Gaming Report (2022-12)
- TN Monthly Sports Gaming Report (2023-01)
- TN Monthly Sports Gaming Report (2023-02)
- TN Monthly Sports Gaming Report (2023-03)
- TN Monthly Sports Gaming Report (2023-04)
- TN Monthly Sports Gaming Report (2023-05)
- TN Monthly Sports Gaming Report (2023-06)
- TN Monthly Sports Gaming Report (2023-07)
- TN Monthly Sports Gaming Report (2023-08)
- TN Monthly Sports Gaming Report (2023-09)
- TN Monthly Sports Gaming Report (2023-10)
- TN Monthly Sports Gaming Report (2023-11)
- TN Monthly Sports Gaming Report (2023-12)
- TN Monthly Sports Gaming Report (2024-01)
- TN Monthly Sports Gaming Report (2024-02)
- TN Monthly Sports Gaming Report (2024-03)
- TN Monthly Sports Gaming Report (2024-04)
- TN Monthly Sports Gaming Report (2024-05)
- TN Monthly Sports Gaming Report (2024-06)
- TN Monthly Sports Gaming Report (2024-07)
- TN Monthly Sports Gaming Report (2024-08)
- TN Monthly Sports Gaming Report (2024-09)
- TN Monthly Sports Gaming Report (2024-10)
- TN Monthly Sports Gaming Report (2024-11)
- TN Monthly Sports Gaming Report (2024-12)
- TN Monthly Sports Gaming Report (2025-01)
- TN Monthly Sports Gaming Report (2025-02)
- TN Monthly Sports Gaming Report (2025-03)
- TN Monthly Sports Gaming Report (2025-04)
- TN Monthly Sports Gaming Report (2025-05)
- TN Monthly Sports Gaming Report (2025-06)
- TN Monthly Sports Gaming Report (2025-07)
- TN Monthly Sports Gaming Report (2025-08)
- TN Monthly Sports Gaming Report (2025-09)
- TN Monthly Sports Gaming Report (2025-10)
- TN Monthly Sports Gaming Report (2025-11)
- TN Monthly Sports Gaming Report (2025-12)
- TN Monthly Sports Gaming Report (2026-01)
- TN Monthly Sports Gaming Report (2026-02)
- TN Monthly Sports Gaming Report (2026-03)
- TN Monthly Sports Gaming Report (2026-04)
- TN Monthly Sports Gaming Report (2026-05)
- TN Monthly Sports Gaming Report (2026-06)
- TN Monthly Sports Gaming Report (2026-07)
- TN Monthly Sports Gaming Report (2026-08)
Licensed operators
| Operator | Brand | Vertical | License | Status | Launched | Partner / venue |
|---|---|---|---|---|---|---|
| DraftKings | DraftKings (DK Crown Holdings) | Daily fantasy | Fantasy Sports Operator | active | [19] | |
| FanDuel | FanDuel | Daily fantasy | Fantasy Sports Operator | active | [19] | |
| Betr | Betr Picks | Pick'em fantasy | Fantasy Sports Operator | active | [19] | |
| PrizePicks | PrizePicks | Pick'em fantasy | Fantasy Sports Operator | active | [19] | |
| Sleeper | Sleeper | Pick'em fantasy | Fantasy Sports Operator | active | [19] | |
| Underdog Fantasy | Underdog Fantasy | Pick'em fantasy | Fantasy Sports Operator | active | [19] | |
| Bally's Corporation | Bally Bet | Sports (online) | Online Sports Wagering Operator | active | [19] | |
| bet365 | bet365 | Sports (online) | Online Sports Wagering Operator | active | [19] | |
| BetMGM | BetMGM | Sports (online) | Online Sports Wagering Operator | active | [19] | |
| Caesars Entertainment | Caesars Sportsbook | Sports (online) | Online Sports Wagering Operator | active | [19] | |
| DraftKings | DraftKings | Sports (online) | Online Sports Wagering Operator | active | [19] | |
| Fanatics Betting and Gaming | Fanatics Sportsbook | Sports (online) | Online Sports Wagering Operator | active | [19] | |
| FanDuel | FanDuel Sportsbook | Sports (online) | Online Sports Wagering Operator | active | [19] | |
| Hard Rock Digital | Hard Rock Bet | Sports (online) | Online Sports Wagering Operator | active | [19] | |
| PENN Entertainment | theScore Bet | Sports (online) | Online Sports Wagering Operator | active | [19] |
Enforcement
Penalties against licensed companies
| Date | Against | Action | Amount | What happened |
|---|---|---|---|---|
| Dec 10, 2025 | BetDSI and BetNow | Fine Sports (online) | $100,000 | The Sports Wagering Council issued $100,000 in fines ($50,000 each) to illegal sportsbooks BetDSI and BetNow for operating in Tennessee without a license.[20] |
| Jul 15, 2025 | BetAnySports, Bookmaker, JazzSports, BetOnline, and Everygame | Fine Sports (online) | $250,000 | The Sports Wagering Council issued $250,000 in fines to five illegal offshore sportsbooks — BetAnySports, Bookmaker, JazzSports (Costa Rica), BetOnline (Panama), and Everygame (Curacao) — at $50,000 each, for continuing to accept wagers from Tennessee residents.[21] |
| Jun 18, 2025 | Lowvig and Sportsbetting.ag | Fine Sports (online) | $100,000 | The Sports Wagering Council fined unlicensed offshore sportsbooks Lowvig and Sportsbetting.ag $50,000 each, totaling $100,000, after both operators ignored an April 2025 cease-and-desist letter demanding they stop accepting Tennessee wagers.[22] |
| May 19, 2025 | BUSR | Fine Sports (online) | $50,000 | The Sports Wagering Council fined unlicensed offshore sportsbook BUSR $50,000 for operating illegally in Tennessee after the operator ignored an earlier cease-and-desist letter from the Council.[23] |
| Apr 30, 2025 | XBET | Fine Sports (online) | $50,000 | The Sports Wagering Council fined unlicensed offshore sportsbook XBET $50,000 for operating illegally in Tennessee in violation of the Tennessee Sports Gaming Act.[24] |
Actions against unlicensed operators
| Date | Against | Action | Amount | What happened |
|---|---|---|---|---|
| Aug 11, 2026 | Heritage Sports, Thunderpick, and Voltage Bet | Cease and desist Sports (online) | The Sports Wagering Council sent cease-and-desist demands to three more illegal offshore sportsbooks — Heritage Sports, Thunderpick, and Voltage Bet — demanding they stop accepting wagers from Tennessee residents.[25] | |
| May 20, 2025 | BetOnline | Cease and desist Sports (online) | The Sports Wagering Council sent a cease-and-desist letter to unlicensed offshore sportsbook BetOnline, giving it until June 16, 2025 to stop accepting wagers from Tennessee residents.[26] |
Problem gambling
- Statutory problem gambling funding (amount or % of tax)
- 5% of privilege tax revenue goes to the Department of Mental Health and Substance Abuse Services, used 'primarily, to address problem gambling and gambling disorders... and secondarily, to address juvenile addiction and mental health disorders' (Tenn. Code Ann. 4-49-119).[1]
Economy
- Adults 21 and over
- 5.4M (2024; 7.3M residents)
- Gambling taxes collected
- $104M in FY2025 · 0.41% of all state taxes
- Gambling jobs
- 88 in 2025 · $139,212 average annual payUndercount: the Bureau of Labor Statistics withholds some figures to protect individual employers.
Gambling taxes collectedState fiscal years
$50.0M$100M$150MFY2013FY2016FY2019FY2022FY2025$104M
Census Bureau tax collections on amusements and pari-mutuel wagering. Most states book casino, sports betting and video gaming taxes here; amusement taxes can also include admissions taxes unrelated to gambling.
Gambling jobsAnnual average
50100201920212023202588
Casinos, casino hotels, card rooms, bingo halls, off-track betting and slot-route operators, from the Bureau of Labor Statistics. Racetracks are not included. Jobs at tribal casinos are counted as government jobs.
Gambling jobs by industry, 2025
| Industry | Ownership | Employers | Jobs | Average pay |
|---|---|---|---|---|
| Gambling industries | privately owned | 22 | 88 | $140,007 |
| Casino hotels | privately owned | withheld |
Taxes by fiscal year
| Fiscal year | Amusement taxes | Pari-mutuel taxes | Share of state taxes |
|---|---|---|---|
| FY2025 | $452K | $103M | 0.41% |
| FY2024 | $432K | $87.6M | 0.36% |
| FY2023 | $506K | $83.3M | 0.35% |
| FY2022 | $46.4M | — | 0.20% |
| FY2021 | $24.9M | — | 0.12% |
| FY2020 | $207K | — | 0.00% |
| FY2019 | $331K | — | 0.00% |
| FY2018 | $283K | — | 0.00% |
| FY2017 | $240K | — | 0.00% |
| FY2016 | $254K | — | 0.00% |
Sources: U.S. Census Bureau, Vintage 2025 Population Estimates: Annual Estimates of the Resident Population for the United States, States (NST-EST2025-ALLDATA); U.S. Census Bureau, Annual Survey of State Government Tax Collections (STC): Historical Dataset; U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2025 annual averages, NAICS 7132 (Gambling industries)
Timeline
- Sep 25, 2026 · Court Ruling · Prediction marketsSixth Circuit vacates Tennessee's Kalshi injunction and remands, holding Kalshi did not show its sports-event contracts are CFTC-exempt "swaps" and that the Commodity Exchange Act would not preempt state law regardless; affirms denial of Kalshi's injunction in the parallel Ohio case[10],[12]KalshiEX LLC v. Orgel, No. 26-5235 (6th Cir.), consolidated with KalshiEX LLC v. Schuler, No. 26-3196 (6th Cir.), opinion by Senior Judge Julia Smith Gibbons, decided 9/25/2026
- May 22, 2026 · Other · Sweepstakes casinosGov. Bill Lee signs SB 2136/HB 1885, banning dual/multi-currency sweepstakes-casino platforms as an unfair/deceptive practice, effective immediately[8],[9]2026 Tenn. Pub. Ch. (SB 2136/HB 1885)
- Feb 2026 · Court Ruling · Prediction marketsU.S. District Judge Aleta Trauger (M.D. Tenn.) grants Kalshi a preliminary injunction blocking SWC enforcement[11]
- Jan 2026 · Other · Prediction marketsSports Wagering Council orders Kalshi, Polymarket, and Nadex to cease offering sports-event contracts in Tennessee without an SWC license[11]
- Jul 1, 2023 · Tax Change · Sports (online)New 1.85%-of-handle privilege tax and tiered license fee structure take effect[1]
- May 24, 2023 · Tax Change · Sports (online)Public Chapter 450 enacted, restructuring privilege tax (20% AGR to 1.85% of handle) and licensing/vendor fee structure[1]
- Jan 1, 2022 · Expanded · Sports (online)Public Chapter 593 transfers all sports-wagering regulatory authority from the Tennessee Education Lottery Corporation to the newly independent Sports Wagering Council[1]
- Jul 1, 2019 · Launched · Sports (online)Tennessee Sports Gaming Act takes effect; Tennessee Education Lottery Corporation begins regulating sports wagering[1]
- Apr 30, 2019 · Legalized · Sports (online)Governor allows the Tennessee Sports Gaming Act (Public Chapter 507) to become law without his signature[1]
- May 14, 2018 · Other · Sports (online)U.S. Supreme Court overturns PASPA, allowing states to legalize sports wagering[1]Murphy v. NCAA
- Jul 1, 2016 · Legalized · Daily fantasyTennessee Fantasy Sports Act takes effect, legalizing DFS and imposing a 6% privilege tax on operator adjusted revenue[18]Tenn. Code Ann. §§ 67-4-901 to -905 (2016 Public Chapter 1006 / SB 2109)
Regulators
- Tennessee Sports Wagering Council (SWC) — Sports (online), Daily fantasy, Pick'em fantasy
- Tennessee Education Lottery Corporation — Lottery, iLottery
- Office of the Tennessee Attorney General — Prediction markets, Sweepstakes casinos
Sources
- Performance Audit Report: Sports Wagering Council (May 2024) · Tennessee Comptroller of the Treasury, Division of State Audit · regulator report · retrieved Oct 10, 2026
“Before July 1, 2023, each operator was required to pay a privilege tax of 20% of its adjusted gross income. Public Chapter 450 changed the privilege tax to 1.85% of an operator's gross handle.”
- Tennessee Sports Wagering Council — Reports · Tennessee Sports Wagering Council · regulator page · retrieved Oct 10, 2026
- Sports betting in the United States · Wikipedia · secondary · retrieved Oct 10, 2026
“Legalized on April 30, 2019; allows only online betting.”
- Gambling in the United States · Wikipedia · secondary · retrieved Oct 10, 2026
- Tennessee Online Lottery · BettingUSA · secondary · retrieved Oct 10, 2026
- Tennessee Lottery's Digital Revolution · LotteryUSA · secondary · retrieved Oct 10, 2026
- Tennessee Sports Wagering Council — Fantasy Sports · Tennessee Sports Wagering Council · regulator page · retrieved Oct 10, 2026
- Are Sweepstakes Casinos Still Legal in Tennessee? Here's the Latest · Casino.org · secondary · retrieved Oct 10, 2026
“This act takes effect upon becoming a law, the public welfare requiring it.”
- Tennessee sweepstakes casino ban signed into law by Gov. Lee · SBC Americas · secondary · retrieved Oct 10, 2026
- Kalshi loses appeal over Ohio and Tennessee sports betting laws, widening circuit split · The Block · secondary · retrieved Oct 10, 2026
“too attenuated, indirect, and speculative”
- Kalshi loses again as Sixth Circuit sides with Ohio, Tennessee · SBC Americas · press · retrieved Oct 10, 2026
- Tennessee Wins Appeal in Major Sports Betting Fight with Kalshi · Office of the Tennessee Attorney General · press · retrieved Oct 10, 2026
“The court unanimously rejected Kalshi's claim that federal commodities law exempts its sports bets from Tennessee's laws.”
- Tennessee: 'No Chance' games illegal skill machines · CasinoBeats · press · retrieved Oct 10, 2026
- Jackpocket Promo Code: Claim $10 Instant Lottery Bonus · Legal Sports Report · secondary · retrieved Oct 10, 2026
- Tennessee lawmakers split over the future of state's online lottery app · NewsChannel 5 (WTVF Nashville) · secondary · retrieved Oct 10, 2026
“"The Lottery implementation law has always allowed for the Lottery itself to sell tickets and accept any form of payment, but legislative action remains necessary to permit retailers to accept debit card transactions," Petrie wrote.”
- Charitable Gaming in Tennessee · Harbor Compliance · secondary · retrieved Oct 10, 2026
“The maximum raffle prize for a single location event is $250,000.”
- Tennessee becomes latest state to outlaw sweepstakes casinos · Gaming Intelligence · press · retrieved Oct 10, 2026
“This bill does not make free games illegal. It primarily targets operation for real money that is being used.”
- Fantasy Sports Tax · Tennessee Department of Revenue · regulator page · retrieved Oct 10, 2026
“is a privilege tax imposed at a rate of six percent”
- Licensees & Registrants | Tennessee Sports Wagering Council · Tennessee Sports Wagering Council · regulator page · retrieved Oct 10, 2026
“Licensed online sports wagering operators: American Wagering, Inc. (dba Caesars Sportsbook) 3/11/21; 7/27/26. Approved fantasy sports licensees: Betr Holdings, Inc. (Betr Picks); ... SidePrize LLC (dba PrizePicks); Underdog Sports, LLC; Sleeper DFS LLC.”
- SWC Issues $100,000 in Fines to 2 Illegal Sportsbooks · Tennessee Sports Wagering Council · regulator page · retrieved Oct 11, 2026
“The SWC issued $100,000 in fines to two illegal sportsbooks, BetDSI and BetNow, $50,000 each.”
- SWC Issues $250,000 in Fines to 5 Illegal Offshore Sportsbooks · Tennessee Sports Wagering Council · regulator page · retrieved Oct 11, 2026
“The SWC issued $250,000 in fines to five illegal offshore sportsbooks: BetAnySports, Bookmaker, JazzSports (Costa Rica), BetOnline (Panama), and Everygame (Curacao).”
- Illegal Offshore Sportsbooks Lowvig & Sportsbetting.ag Fined $50,000 Each by the SWC · Tennessee Sports Wagering Council · regulator page · retrieved Oct 11, 2026
“Lowvig and Sportsbetting.ag were fined $50,000 each after ignoring the Council's April cease-and-desist letters.”
- SWC Fines Illegal Sportsbook BUSR $50,000 · Tennessee Sports Wagering Council · regulator page · retrieved Oct 11, 2026
“The Sports Wagering Council (SWC) fined illegal offshore sportsbook BUSR $50,000 for operating illegally in Tennessee.”
- SWC Fines Illegal Sportsbook XBET $50,000 · Tennessee Sports Wagering Council · regulator page · retrieved Oct 11, 2026
“The Sports Wagering Council (SWC) fined illegal offshore sportsbook XBET $50,000 for operating illegally in Tennessee.”
- SWC Sends Cease-and-Desist Demands to Three More Illegal Sportsbooks · Tennessee Sports Wagering Council · regulator page · retrieved Oct 11, 2026
“The Sports Wagering Council sent cease-and-desist demands to three more illegal sportsbooks: Heritage Sports, Thunderpick, and Voltage Bet.”
- SWC Sends Cease-and-Desist Letter to Illegal Sportsbook BetOnline · Tennessee Sports Wagering Council · regulator page · retrieved Oct 11, 2026
“BetOnline has until June 16, 2025 to cease operations in Tennessee.”