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The Tennessee gambling landscape is a land of contradictions. On one hand, the in-person gambling options are quite limited with not a single casino or racetrack to be found anywhere in the state. On the other hand, Tennessee is home to a growing number of online betting options that include mobile sports betting, fantasy sports, and horse racing betting.
The in-person gambling options in Tennessee consist of a state lottery that was established in 2003 and a limited selection of charitable games such as raffles and cakewalks. This is one of the few states in the Union that even bans charitable bingo and poker games. With this in mind, it should come as no surprise that social poker games are similarly outlawed.
Tennessee will be the next state to open legalized sports betting beginning on the first of November. Bets will only be accepted through online mobile apps. The Sports Wagering Committee of the Tennessee Education Lottery is responsible for reviewing and authorizing applications from betting app operators. Tennessee has taken a harsh stance against land based casinos, so online casinos are the only option for this form of legal gambling in the state. Regardless of anything, players will always be able to turn to the question of are online casinos legal in Tennessee, see that the answer is yes, and play any casino game they desire, ranging from. We’re not really gamblers, but we needed a place to land since we’d been driving for 10 hours and weren’t making it all the way to Nashville, and this was the place to stop - we originally wanted to stop in Paducah, but this hotel grabbed us since the rate was only $49 - it ends up being a bit more with taxes and a daily fee that’s something like $10, but overall, it was definitely worth it.
Forms of gambling that are legal in Tennessee:
*Sports betting (online and mobile)
*Horse racing betting (online and mobile)
*Fantasy sports (online DFS and in-person)
*Lottery (in-person)
*Limited charitable gaming (raffles, cakewalks and cakewheels)Gambling SiteRatingOnline Gambling in Tennessee
Legal online gambling options in Tennessee actually outnumber what’s legal in person, surprisingly enough. Although the state’s legal code is quite restrictive regarding what is and is not considered gambling, lawmakers have shown a willingness to embrace legislation to authorize certain types of online betting.
Mobile sports betting Hard rock cafe casino biloxi mississippi. was legalized in 2019 to make TN the first state to pass a bill authorizing online betting only. With no brick-and-mortar casinos but a clear desire to get in on the sports betting rush, lawmakers opted for mobile sportsbooks instead.
Shortly thereafter, major sports betting operators such as DraftKings were quick to confirm they would pursue Indiana licenses.
Four online sportsbooks applied for TN sports betting licenses and launched in November 2020:
*DraftKings
*FanDuel
*BetMGM
*Tennessee Action 24/7
This is much the same story for online horse racing betting in TN. A lack of physical racetracks leaves horse racing fans with online betting options only.
Licensed racing betting sites in TN:
*TVG
*BetAmerica
*TwinSpires
Daily fantasy sports were legalized in 2016, just months after the Attorney General declared such games to be a form of illegal gambling. The AG opinion motivated the legislature to pass a law to legalize DFS contests and require operators to apply for licenses.
Licensed DFS sites in TN:
*DraftKings
*FanDuel
*FantasyDraft
*DraftBoard
*SportsHub Technologies (operator of numerous smaller DFS brands)
*StarStreet LLC (DRAFT.com)
*Yahoo! Fantasy SportsTennessee Sports Betting
After the Supreme Court overturned the federal sports betting ban in May 2018, Tennessee did not seem like a likely contender to become one of the early adopters of legal sports betting considering the state’s strong anti-gambling streak.
A total lack of casinos, racetracks and not even a state lottery until 2003 all seemed to indicate little desire among lawmakers to expand the state’s gambling options.
That all changed in 2019 when the legislature approved a bill allowing mobile sports betting. Under the law, any number of qualified betting operators may apply for licenses to offer their wares to customers 21 or older. The first Tennessee online sportsbooks opened for business on November 1st, 2020.
A fiscal note attached to the bill estimated legal TN sports betting would generate up to $50 million per year in new state revenue with the majority of that going to fund public education. The remaining revenue has been earmarked for mental health services, substance abuse programs and college scholarships.
Local pro sports teams also welcomed the legislation despite the leagues’ previous opposition to sports betting. Both the Memphis Grizzlies and Nashville Predators issued statements after the law was passed stating they anticipate increased economic growth and fan engagement as a result of legal sports betting.
Mobile Betting Only
The passage of that law in 2019 made Tennessee the first state to legalize mobile sports betting without any brick-and-mortar component whatsoever. Although Tennessee lacks actual casinos, mobile-only was not necessarily the only way forward.
In-person betting kiosks were considered at one point, but lawmakers ended up stripping that langue from the bill during negotiations before passing it into law. In the grand scheme of things, a lack of in-person sportsbooks will likely make little difference considering the preponderance of mobile devices today.
Data from other states with legal sports betting have shown the vast majority (upwards of 80%) of all wagers are placed online even when physical sportsbooks are an option. Cody Harvard, Associate Professor of Sports Commerce at the University of Memphis, put it best when he said this:
“The fact that it would be online only or mobile only would be further attractive to especially the younger consumer, because everyone is on their phone now anyway. I understand the appeal of walking into a casino or walking into a (sportsbook) to place a bet, but I don’t know if that is as important to younger consumers.”Horse Racing Betting in Tennessee
Horse racing betting has had a tough time gaining any traction in Tennessee despite the state’s rich racing history. Tennessee had an active horse racing industry throughout the 19th century, where one could find no fewer than nine racetracks in Knoxville alone.
That all changed in 1905 when the state outlawed racing betting. Horse racing itself remained legal, but every single track eventually shuttered without the critical financial support provided by parimutuel wagering. What was once a bustling industry in Tennessee had been completely and fully destroyed by the betting prohibition.
Lawmakers attempted to revive the industry by passing the Racing Control Act of 1987 to legalize wagering once again and establish a process by which new racetracks could be built.
The Act ran into problems almost immediately.
First, racetracks could only be constructed if voters approved them through a county referendum. Most track proposals were shot down by voters, and those that did make it through the referendum process ran into financial trouble before they could even begin construction.
Lawmakers finally repealed the Racing Control Act in 2015 to close that chapter on racing betting in TN. Governor Bill Haslam signed a bill into law in 2018 to revisit the feasibility of parimutuel wagering and horse racing, but any progress made on that front was quickly overshadowed by the specter of legal sports betting.
Surprisingly, advance deposit wagering (ADW) has survived intact and remains legal to this day. The largest US-based racing betting sites accept customers from Tennessee and offer parimutuel wagering on races held around the world.Daily Fantasy Sports in TN
Tennessee law requires all daily fantasy sports (DFS) sites to be licensed in order to offer real money contests. To date, the country’s major DFS sites have all obtained licenses and now accept customers who are 18 or older.
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The daily fantasy industry has been fairly fortunate in Tennessee given the state’s stringent laws on gambling. Sites such as FanDuel and DraftKings hit the mainstream in 2014 and openly operated in Tennessee for a good two years until Attorney General Herbert Slatery III issued an opinion declaring fantasy contests to be a form of illegal gambling.
The opinion pointed out that Tennessee law considers activities that involve risk, reward and any degree of chance whatsoever to be gambling. From the opinion:
“While participants may use skill to select players for their teams, winning a fantasy sports contest is contingent to some degree on chance. Namely, the participants do not control how selected athletes perform in actuality on a given day. Athletes’ performances are affected by many fortuitous factors – weather, facilities, referees, injuries, etc.”
This opinion nearly killed daily fantasy in Tennessee, but the state legislature moved quickly to give DFS operators legal cover. A law passed later that year granted DFS an exemption from anti-gambling statutes, initiated a licensing process and established some basic consumer regulations such as requiring operators to keep players’ funds segregated from sites’ operating funds.About the TN Lottery
The Tennessee Lottery was formed in 2003 and the first lottery tickets were sold later that year. The first batch of games offered to the public were simple, instant-win games that generated nearly $11 million worth of sales on the very first day.
TN launched the first draw game in 2004 and joined the Multi-State Lottery Association (MUSL) one month later in order to bring Powerball drawings to Tennessee. Within three years, the TN Lottery began routinely topping $1 billion in sales per year.
Revenue generated by the Tennessee Education Lottery (TEL) goes to fund education efforts such as grants and scholarships, after school programs and the Drive to 55 initiative.
The TN Lottery also runs a voluntary charitable giving program in which participants can register to have a portion of their winnings donated to registered charitable organizations. Charitable organizations can request a set amount or a fixed percentage of 5%+ from winnings of greater than $5,000 from players who have opted into the program.Charitable Gaming in Tennessee
Tennessee’s strict gambling laws also apply to charitable gaming. Registered charitable organizations may only operate a few forms of charitable games – and just once per year at that.
The only types of charitable games allowed by TN law are:
*Raffles: Each participant purchases a ticket to enter, and prize winners are determined by random drawing
*Reverse raffles: Each participant purchases a ticket to enter and a random drawing is then held to eliminate tickets. The last ticket(s) drawn are the prize winners. Basically, you do not want to hear your ticket number when playing in a reverse raffle.
*Cakewalks: Numbered squares are arranged in a circle on the floor and participants who purchased tickets walk around the circle while music plays (sort of like musical chairs). When the music stops, everyone stops at the nearest numbered square. A number is drawn at random and the person with the corresponding number on the floor wins a prize.
*Cakewheels: A game in which players pick numbers and a big wheel is spun. The holder of the winning number wins a prize.
It is important to note that Tennessee does not offer detailed instructions on ensuring a fundraising game is compliant with state law. All charitable gaming activities must be approved ahead of time, and at that point the state will notify the organizers if the game is not compliant.
If you’re interested in participating in a charitable event, you can find a calendar of approved upcoming events on the Tennessee Department of State website here.Tennessee Gambling Law
Tennessee gambling law draws very distinct lines between what is legal and what is prohibited. The legislature has specifically legalized certain forms of gaming and betting, but most gambling activities remain strictly prohibited.
The simplest way to describe Tennessee gambling law is if an activity hasn’t been specifically legalized with new legislation, it is probably illegal. Tennessee law maintains a strict definition of the word “gambling” that does not leave much leeway for games that have not been authorized through the legal process.
Tenn. Code Ann. § 39-17-501 defines gambling as follows:
“Gambling is contrary to the public policy of this state and means risking anything of value for a profit whose return is to any degree contingent on chance, or any games of chance associated with casinos, including but not limited to, slot machines, roulette wheels and the like.”
What’s troublesome here is the “to any degree” portion of that definition. In other states, gambling is usually defined as something based predominantly on chance. In Tennessee, any element of chance whatsoever is enough to classify an activity as gambling.
This definition is so strict that in 1990, the TN attorney general ruled turkey shoots and fishing tournaments played for money to be illegal gambling (Tenn. Att’y Gen. Op. 90-08 [Jan. 22, 1990]).
TN Sports Betting Law
Useful links:
Tennessee legalized sports betting in May 2019 with the passage of HB 0001, also known as the Tennessee Sports Gaming Act.
This law was the first of its kind as it authorized online and mobile betting with no provision whatsoever for in-person sportsbooks. This also made Tennessee the first state in which qualified gaming operators may apply for sports betting licenses without having to partner with an existing brick-and-mortar casino.
That’s the good news for operators. The bad news is they pay quite a bit for opportunity to offer mobile sports betting in Tennessee. Licenses cost operators $50,000 up front and must be renewed at a cost of $750,000 per year.
All licensees are also required to purchase official data from the sports leagues in order to settle in-play wagers.
Additionally, mobile sports betting providers operate under a “privilege tax” of 20% on adjusted gross income. Tax revenue generated for the state is earmarked as follows:
*80% goes to the Lottery for Education account to promote public education
*15% is distributed to local county and cities throughout TN on a per capita basis to be used for local infrastructure projects
*5% goes to programs for mental health and substance abuse
Licensed TN betting sites are also subject to a standard set of rules designed for consumer protection and sporting integrity:
*Customers must be 21 or older to bet on sports in TN
*Wagers may not be accepted from athletes and other sporting officials who may have a direct impact on games
*Prop bets on college sports are prohibited
*Sports leagues may request the board to prohibit certain types of wagers if the league is concerned such wagers may affect the integrity of the game
*Betting operators may not extend credit to customers
*Betting operators must provide self-exclusion programs
*Online and mobile wagers may only be accepted from people who are physically present within TN state lines
The Tennessee Sports Gaming Act also specifies which types of payment methods may be accepted by mobile betting apps:
*Electronic bank transfers
*Debit cards
*Online and mobile payment systems
*Any other method approved by the board
Legalizing sports betting in Tennessee was achieved soley by the General Assembly, which made it much easier for the bill to pass into law. At one point, it was questioned whether or not the legislature could legalize sports betting without a constitutional amendment and the question was sent to Attorney General Herbert H. Slatery III for an opinion.
Specifically, the question was whether or not sports betting would constitute a form of lottery under TN law. If so, legalizing sports betting would require a constitutional amendment. If not, the TN legislature would be able to proceed with legislation to legalize sports betting.
Had the AG decided that a constitutional amendment was necessary, the process of legalization would have been made much more difficult. As we saw with the legalization of the lottery, that outcome would have required the General Assembly to approve a voter referendum across two separate sessions.
Assuming the General Assembly could have agreed on such a bill two separate times, the question would have then been put to the voters for their input. A negative vote could have shot down sports betting in TN for the foreseeable future and we wouldn’t be where we are today with legal online sportsbooks.
The AG opinion ended up being somewhat of a dud as it failed to reach a definitive conclusion:
“In sum, whether a particular sports betting contest comes within Tennessee’s constitutional prohibition of lotteries would turn upon the particular facts of the contest as it is actually conducted. If chance is the dominant factor in determining the outcome of the contest, the contest constitutes a lottery and, absent an amendment to the Tennessee Constitution, the General Assembly may not authorize the contest solely through legislative action. If skill is the dominant factor in determining the outcome of the contest, the General Assembly may legalize the contest solely through legislative action without a constitutional amendment.”
However, this left enough of an opening for the General Assembly to proceed with HB 0001 and legalize sports betting. Legal sports betting dodged one last bullet after the law was sent to Governor Bill Lee, who was opposed to any ga

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