American Gambling Markets Atlas (AGMA)

States / Tennessee

Tennessee

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. A 2025 law, the Education Freedom Act, redirected the tax's 80% education share from lottery scholarships to K-12 school building construction and maintenance, while keeping the shares for local governments (15%) and problem-gambling programs (5%) unchanged.
  • 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 11, 2026 · 37 sources

Legal status

LiveLegal, not launchedLimitedContestedProhibitedNot authorizedRepealedNA
VerticalStatusLaunchedModelDetails
Sports (online)LiveNov 2020CompetitiveLegalized 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.
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 authorizedTennessee 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 casinoNot authorizedNo iGaming statute; Tennessee has no commercial casino industry.[3]
Online pokerNot authorized[3]
Commercial casinosNot authorizedTennessee is not among the states with commercial casinos; no statute authorizes land-based casino gaming.[4]
Tribal casinosNot authorizedTennessee is not among the states with Native American gaming facilities; no federally recognized tribe operates a compacted casino in the state.[4]
LotteryLiveJan 20, 2004Monopoly StateTennessee Education Lottery Corporation operates the state lottery (draw games, scratch-offs). Voters approved a constitutional amendment (58%) at the Nov. 5, 2002 general election repealing the state's 1835 constitutional lottery ban; the General Assembly then enacted the Tennessee Education Lottery Implementation Law, creating the TELC. The Lottery sold its first ticket Jan. 20, 2004.
Tenn. Code Ann. Title 4, Chapter 51 (Tennessee Education Lottery Implementation Law); Tenn. Const. (lottery exception added by the Nov. 5, 2002 ballot measure, "Amendment 1")
[1],[5],[6]?
iLotteryLimitedJan 2025Monopoly StateTennessee Education Lottery launched the "TN iLottery" app in January 2025, selling draw-game tickets online. The Lottery relies on its existing statutory authority to sell tickets directly and accept non-cash payment, unlike retailers, rather than on new legislation. Players must be 18+ and physically in Tennessee. Scratch-offs and other e-instant (digital scratch-style) games remain retailer-only and are not sold through the app, which is why this vertical is marked limited rather than fully operational.[7],[8]?
Daily fantasyLiveCompetitiveFantasy 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)
[9]
VGTs / VLTsNot authorized[4]
Historical horse racingNot authorized[4]
Sweepstakes casinosProhibitedLegalized May 22, 2026Law 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. It followed a December 29, 2025 Attorney General action that sent cease-and-desist letters to almost forty online sweepstakes-casino operators, arguing the dual-currency model is an illegal lottery under the Tennessee Constitution.
2026 Pub. Ch. (SB 2136/HB 1885)
[10],[11],[12]
Prediction marketsContestedThe 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). The dispute remains unresolved: the Sixth Circuit sent the case back to the district court rather than finally deciding it, and litigation continues.[13],[14],[15],[16],[10]
Skill gamesProhibitedA 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 appellate reversal has been reported.[17]
Card roomsNot authorized[4]
Lottery couriersNot authorizedNo Tennessee statute or TELC rule expressly authorizes or bans third-party lottery courier services. TELC reads the Tennessee Education Lottery Implementation Law as authorizing only the Lottery itself, not retailers or outside apps, to sell tickets online or electronically and accept non-cash payment; some legislators dispute even that (Rep. William Lamberth: "there's been no bill that's gone through here to allow for online lottery sales"). A March 2025 industry regulatory review counted Tennessee among roughly 40 states with no law expressly permitting or prohibiting couriers, and no licensed courier (Jackpocket, Lotto.com, Jackpot.com) currently lists Tennessee as an operating state.[18],[19]
Pick'em fantasyLiveCompetitiveThe 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)
[9]
Pari-mutuelNot authorizedTennessee has no live horse or dog racing industry with pari-mutuel wagering.[4]
Advance deposit wageringNot authorized[4]
Charitable gamingLiveMonopoly StateQualifying 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. Prize caps are $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')
[20]?
Esports bettingLiveCompetitiveEsports wagering is offered by licensed sports wagering operators under the Sports Gaming Act framework, treated the same as other SWC-regulated sporting-events wagering.[1]
Social casinoLiveCompetitiveTennessee's 2026 law banning dual/multi-currency sweepstakes-casino platforms (SB 2136/HB 1885) 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 that carry no cash-redeemable prize.[21]

Sports betting in Tennessee: status, tax rate, sportsbooks and bills →

Tax rates

VerticalChannelRateBaseTierPromos deductibleSinceStatute
Daily fantasyonline6%AGRNoJul 1, 2016Tenn. 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.
[29]
Pick'em fantasyonline6%AGRNoJul 1, 2016Tenn. 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.
[29]
Sports (online)online1.85%HANDLEJul 1, 2023Tenn. 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

VerticalRateBasePeriodNotes
Sports (online) · online20%AGRJul 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
Operators must use numbers from the SWC's 'List of Approved Toll-Free Numbers for Advertising' in their ads.[1]?

Casinos

Number of commercial casinos/racinos operating
0[4]
Number of tribal gaming facilities
0[4]

Legislation

Summary of significant pending gambling legislation this session
The most recent major change was 2023 Public Chapter 450 (effective 7/1/2023), which restructured the privilege tax and license-fee framework. A 2025 law (the Education Freedom Act) separately redirected the tax's education share from lottery scholarships to K-12 school facilities. No other pending gambling legislation was found for 2025-2026.[1],[22]

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 for charitable bingo/raffles
18[20]?
Minimum age to play DFS
18[24]?
Minimum age to purchase lottery
18
Tennessee law bars selling a lottery ticket to anyone under 18 and requires retailers to post a sign warning of this.
[25]
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]

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.[13],[15],[16]

Sports betting rules

Wagering on college sports allowed at all
Yes
Approved league events include 'certain seasonal and post-season awards, and certain collegiate awards.'
[1]
Wagering on in-state college teams allowed
Yes[26]?
Individual college player prop bets allowed
No
No proposition bets on individual college athletes are offered, at any school, pregame or in-game.
[26]?
Credit cards may be used to fund accounts
No
Operators must keep credit-card funds segregated and may not use them to fund a player's Tennessee wagering account; accepted funding methods are debit cards, bank transfers, online payment systems and winnings.
[27]
Esports wagering allowed
Yes[1]
New online accounts must be created in person
No
Accounts are opened and verified entirely online -- identity checks against a government ID, knowledge-based questions, and device/phone matching -- and Tennessee has no retail sportsbooks or kiosks to register at in person.
[27]
Online sports wagering available statewide (not tethered to premises)
Yes[1]
Operators must use official league data for some bets
No
The original 2019 law required operators to use official league data for in-play wagers; that mandate was later dropped.
[26]?
Any per-wager fee/tax (e.g. Illinois 2025 per-bet tax) summary
Tennessee has no flat per-wager fee. It instead taxes total handle directly: operators pay a 1.85% privilege tax on the full amount wagered, not on revenue.[1]
Summary of prop-bet restrictions (e.g. no in-game player props)
No player props on individual college athletes at any school, and no in-game proposition bets on college team events; pregame team props on college games are allowed.[26]?

Tax revenue

Where gaming tax revenue goes (education fund
Since July 2025, the privilege tax's 80% education share goes to school construction and maintenance instead of lottery scholarships: it is distributed through the state treasurer to local education agencies for building and maintaining public K-12 school facilities (lottery-funded scholarships can still draw on this money if lottery proceeds themselves fall short). The other shares are unchanged: 15% to the state General Fund, remitted to local governments on a per capita basis, and 5% to the Dept. of Mental Health and Substance Abuse Services for problem-gambling treatment and prevention. Licensing fee revenue still funds SWC operating expenses first, with any remainder to the Tennessee Promise Scholarship endowment fund; violation fines still fund SWC education/outreach programs and investigation expenses. (from Jul 1, 2025)[22],[28],[1]?
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 (remitted quarterly to local governments on a per capita basis), 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]
Uses that sports-wagering tax revenue is directed to by law, largest share first where the law sets shares
education, local_government, problem_gambling
By statute, the sports-wagering privilege tax is split 80% for education (K-12 school facilities since 2025, previously lottery scholarships), 15% for local governments, and 5% for problem-gambling treatment and prevention.
[1],[22],[28]

Revenue

Tax revenueMonthly · Sports (online)
Monthly3-month average
$5.0M$10.0M$15.0M202120222023202420252026Online sports tax 20% → 1.85%Online sports tax changeOct 2025 $12.1M$7.9M

Calendar-year totals from available reports; incomplete years are partial totals.

VerticalMeasure2026202520242023202220212020
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)

Lottery

Status
Live · Monopoly State
NotesTennessee Education Lottery Corporation operates the state lottery (draw games, scratch-offs). Voters approved a constitutional amendment (58%) at the Nov. 5, 2002 general election repealing the state's 1835 constitutional lottery ban; the General Assembly then enacted the Tennessee Education Lottery Implementation Law, creating the TELC. The Lottery sold its first ticket Jan. 20, 2004.
[1],[5],[6]?
Authorized
Nov 5, 2002
Tenn. Code Ann. Title 4, Chapter 51 (Tennessee Education Lottery Implementation Law); Tenn. Const. (lottery exception added by the Nov. 5, 2002 ballot measure, "Amendment 1")
First tickets sold
Jan 20, 2004
Run by
Tennessee Education Lottery Corporation
Minimum age
18[25]
Multistate games
Powerball, Mega Millions, Millionaire for Life[5],[23]
Where the money goes
Tenn. Code Ann. § 4-51-111 requires net lottery proceeds to equal at least 35% of lottery proceeds each fiscal year (30% for the first two full fiscal years and any partial first year). Net proceeds are deposited in the Lottery for Education Account, become state property, and must be spent on education programs; year-end balances do not revert to the general fund. Reserves in the account "shall be used first for any shortfall in the amount appropriated to the educational scholarship program" (funding HOPE and other lottery scholarships), with other education uses -- including an after-school programs account -- funded after scholarships.[6]
Online sales (iLottery)
Limited · since Jan 2025
NotesTennessee Education Lottery launched the "TN iLottery" app in January 2025, selling draw-game tickets online. The Lottery relies on its existing statutory authority to sell tickets directly and accept non-cash payment, unlike retailers, rather than on new legislation. Players must be 18+ and physically in Tennessee. Scratch-offs and other e-instant (digital scratch-style) games remain retailer-only and are not sold through the app, which is why this vertical is marked limited rather than fully operational.
[7],[8]?
Courier services
Not authorized
NotesNo Tennessee statute or TELC rule expressly authorizes or bans third-party lottery courier services. TELC reads the Tennessee Education Lottery Implementation Law as authorizing only the Lottery itself, not retailers or outside apps, to sell tickets online or electronically and accept non-cash payment; some legislators dispute even that (Rep. William Lamberth: "there's been no bill that's gone through here to allow for online lottery sales"). A March 2025 industry regulatory review counted Tennessee among roughly 40 states with no law expressly permitting or prohibiting couriers, and no licensed courier (Jackpocket, Lotto.com, Jackpot.com) currently lists Tennessee as an operating state.
[18],[19]
Lottery sales and money kept by the stateState fiscal years
SalesKept by the stateOnline gambling legalized
$1.0B$2.0BFY2012FY2015FY2018FY2021FY20241$1.9B$645M
  1. 1Jul 1, 2019: online sports betting legalized · launched Nov 2020
Yearly figures
Fiscal yearSalesPrizesAdministrationKept by the statePrize share
FY2024$1.9B$1.2B$35.3M$645M63%
FY2023$1.9B$1.2B$34.1M$651M64%
FY2022$1.7B$1.2B$31.6M$481M70%
FY2021$1.8B$1.2B$31.0M$496M70%
FY2020$1.6B$1.1B$31.6M$433M70%
FY2019$1.5B$1.1B$30.5M$442M69%
FY2018$1.5B$1.0B$30.2M$417M70%
FY2017$1.4B$948M$29.3M$383M70%
FY2016$1.4B$966M$30.4M$379M70%
FY2015$1.2B$869M$30.8M$344M70%
FY2014$1.2B$837M$28.0M$333M70%
FY2013$1.2B$794M$29.2M$335M69%
FY2012$1.1B$757M$27.4M$319M69%

Source: U.S. Census Bureau, Annual Survey of State Government Finances

Lottery timeline

  • Jan 20, 2004 · Launched · Lottery
    Tennessee Education Lottery Corporation sells its first ticket[5]
  • Nov 5, 2002 · Legalized · Lottery
    Voters approve Amendment 1, repealing Tennessee's constitutional lottery ban[5]

Licensed operators

OperatorBrandVerticalLicenseStatusLaunchedPartner / venue
DraftKingsDraftKings (DK Crown Holdings)Daily fantasyFantasy Sports Operatoractive[30]
FanDuelFanDuelDaily fantasyFantasy Sports Operatoractive[30]
BetrBetr PicksPick'em fantasyFantasy Sports Operatoractive[30]
PrizePicksPrizePicksPick'em fantasyFantasy Sports Operatoractive[30]
SleeperSleeperPick'em fantasyFantasy Sports Operatoractive[30]
Underdog FantasyUnderdog FantasyPick'em fantasyFantasy Sports Operatoractive[30]
Bally's CorporationBally BetSports (online)Online Sports Wagering Operatoractive[30]
bet365bet365Sports (online)Online Sports Wagering Operatoractive[30]
BetMGMBetMGMSports (online)Online Sports Wagering Operatoractive[30]
Caesars EntertainmentCaesars SportsbookSports (online)Online Sports Wagering Operatoractive[30]
DraftKingsDraftKingsSports (online)Online Sports Wagering Operatoractive[30]
Fanatics Betting and GamingFanatics SportsbookSports (online)Online Sports Wagering Operatoractive[30]
FanDuelFanDuel SportsbookSports (online)Online Sports Wagering Operatoractive[30]
Hard Rock DigitalHard Rock BetSports (online)Online Sports Wagering Operatoractive[30]
PENN EntertainmenttheScore BetSports (online)Online Sports Wagering Operatoractive[30]

Enforcement

Penalties against licensed companies

DateAgainstActionAmountWhat happened
Dec 10, 2025BetDSI and BetNowFine
Sports (online)
$100,000The Sports Wagering Council issued $100,000 in fines ($50,000 each) to illegal sportsbooks BetDSI and BetNow for operating in Tennessee without a license.[31]
Jul 15, 2025BetAnySports, Bookmaker, JazzSports, BetOnline, and EverygameFine
Sports (online)
$250,000The 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.[32]
Jun 18, 2025Lowvig and Sportsbetting.agFine
Sports (online)
$100,000The 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.[33]
May 19, 2025BUSRFine
Sports (online)
$50,000The 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.[34]
Apr 30, 2025XBETFine
Sports (online)
$50,000The Sports Wagering Council fined unlicensed offshore sportsbook XBET $50,000 for operating illegally in Tennessee in violation of the Tennessee Sports Gaming Act.[35]

Actions against unlicensed operators

DateAgainstActionAmountWhat happened
Aug 11, 2026Heritage Sports, Thunderpick, and Voltage BetCease 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.[36]
May 20, 2025BetOnlineCease 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.[37]

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 pay
Undercount: the Bureau of Labor Statistics withholds some figures to protect individual employers.
Gambling taxes collectedState fiscal years
Gambling taxesLottery proceeds
$250M$500M$750MFY2013FY2016FY2019FY2022FY2025$104M$645M

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. Lottery proceeds are what the lottery transfers to the state after prizes and costs.

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

IndustryOwnershipEmployersJobsAverage pay
Gambling industriesprivately owned2288$140,007
Casino hotelsprivately ownedwithheld

Taxes by fiscal year

Fiscal yearAmusement taxesPari-mutuel taxesShare of state taxesLottery proceeds
FY2025$452K$103M0.41%—
FY2024$432K$87.6M0.36%$645M
FY2023$506K$83.3M0.35%$651M
FY2022$46.4M—0.20%$481M
FY2021$24.9M—0.12%$496M
FY2020$207K—0.00%$433M
FY2019$331K—0.00%$442M
FY2018$283K—0.00%$417M
FY2017$240K—0.00%$383M
FY2016$254K—0.00%$379M

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 markets
    Sixth 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[13],[15],[16]
    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 casinos
    Gov. Bill Lee signs SB 2136/HB 1885, banning dual/multi-currency sweepstakes-casino platforms as an unfair/deceptive practice, effective immediately[10],[11]
    2026 Tenn. Pub. Ch. (SB 2136/HB 1885)
  • Feb 2026 · Court Ruling · Prediction markets
    U.S. District Judge Aleta Trauger (M.D. Tenn.) grants Kalshi a preliminary injunction blocking SWC enforcement[14]
  • Jan 2026 · Other · Prediction markets
    Sports Wagering Council orders Kalshi, Polymarket, and Nadex to cease offering sports-event contracts in Tennessee without an SWC license[14]
  • Dec 29, 2025 · Cease And Desist · Sweepstakes casinos
    Attorney General sends cease-and-desist letters to almost 40 online sweepstakes casinos[12]
    Office of the Tennessee Attorney General, Press Release PR25-61 (Dec. 29, 2025)
  • Jul 1, 2025 · Tax Change · Sports (online)
    Education Freedom Act redirects the privilege tax's 80% education share from lottery scholarships to K-12 school facility construction and maintenance[22],[28]?
    2025 Education Freedom Act (1st Extraordinary Session)
  • 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 fantasy
    Tennessee Fantasy Sports Act takes effect, legalizing DFS and imposing a 6% privilege tax on operator adjusted revenue[29]
    Tenn. Code Ann. §§ 67-4-901 to -905 (2016 Public Chapter 1006 / SB 2109)
  • Jan 20, 2004 · Launched · Lottery
    Tennessee Education Lottery Corporation sells its first ticket[5]
  • Nov 5, 2002 · Legalized · Lottery
    Voters approve Amendment 1, repealing Tennessee's constitutional lottery ban[5]
    Tennessee Lottery for Education, Amendment 1 (2002)

Regulators

Sources

  1. 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.”
  2. Tennessee Sports Wagering Council — Reports · Tennessee Sports Wagering Council · regulator page · retrieved Oct 10, 2026

    Lists monthly sports gaming revenue reports beginning November 2020, the earliest available, indicating launch that month.

  3. Sports betting in the United States · Wikipedia · secondary · retrieved Oct 10, 2026
    “Legalized on April 30, 2019; allows only online betting.”
  4. Gambling in the United States · Wikipedia · secondary · retrieved Oct 10, 2026

    secondary source only; used to confirm absence of commercial/tribal casinos.

  5. Tennessee Lottery · Wikipedia · secondary · retrieved Oct 11, 2026

    Also describes a "November 2002 Amendment" to the state constitution, approved by 58% of voters, repealing the 1835 constitutional lottery ban (cited there as "Tennessee Lottery for Education, Amendment 1 (2002)"); Tennessee joined Cash4Life Nov. 1, 2015.

    “The TELC sold its first ticket on January 20, 2004.”
  6. Tenn. Code Ann. § 4-51-111 — Lottery for Education Account · FindLaw (mirror of Tennessee Code Annotated, Title 4, Chapter 51, Tennessee Education Lottery Implementation Law) · statute · retrieved Oct 11, 2026
    “net lottery proceeds shall equal at least thirty-five percent (35%) of the lottery proceeds... Amounts remaining in the account at the end of each fiscal year shall not revert to the general fund... shall be used first for any shortfall in the amount appropriated to the educational scholarship program.”
  7. Tennessee Online Lottery · BettingUSA · secondary · retrieved Oct 10, 2026

    Reports the TN iLottery app (launched January 2025) currently limits online purchases to Powerball tickets via ACH payment; additional games/payment methods reportedly planned.

  8. Tennessee Lottery's Digital Revolution · LotteryUSA · secondary · retrieved Oct 10, 2026

    Citing a TEL spokesperson, confirms the iLottery app launched Jan. 2025 selling Powerball tickets online via ACH, with no e-instant/scratch-style games online.

  9. Tennessee Sports Wagering Council — Fantasy Sports · Tennessee Sports Wagering Council · regulator page · retrieved Oct 10, 2026
  10. Are Sweepstakes Casinos Still Legal in Tennessee? Here's the Latest · Casino.org · secondary · retrieved Oct 10, 2026

    Also reports the companion prediction-markets bill SB 1992 (Class E felony for attempting to influence a prediction-market event's outcome for financial gain).

    “This act takes effect upon becoming a law, the public welfare requiring it.”
  11. Tennessee sweepstakes casino ban signed into law by Gov. Lee · SBC Americas · secondary · retrieved Oct 10, 2026

    Reports May 22, 2026 signing date for SB 2136/HB 1885; direct fetch returned 403, so used via search-result summary text only.

  12. Tennessee Attorney General's Office Cracks Down on Illegal Online Sweepstake Casinos · Office of the Tennessee Attorney General · press · retrieved Oct 11, 2026
    “sent formal cease-and-desist letters to almost forty online sweepstakes casinos operating illegally”
  13. Kalshi loses appeal over Ohio and Tennessee sports betting laws, widening circuit split · The Block · secondary · retrieved Oct 10, 2026

    Confirms case names (KalshiEX LLC v. Schuler, No. 26-3196; KalshiEX LLC v. Orgel, No. 26-5235), decision date 9/25/2026, opinion author Senior Judge Julia Smith Gibbons, and disposition (Ohio denial affirmed; Tennessee injunction vacated and remanded).

    “too attenuated, indirect, and speculative”
  14. Kalshi loses again as Sixth Circuit sides with Ohio, Tennessee · SBC Americas · secondary · retrieved Oct 10, 2026

    Reports the SWC's January 2026 cease-and-desist order against Kalshi/Polymarket/Nadex and Judge Trauger's February 2026 injunction; direct fetch returned 403, used via search-result summary text only.

  15. KalshiEX LLC v. Schuler / Orgel, Nos. 26-3196/5235 (Sept. 25, 2026) · U.S. Court of Appeals for the Sixth Circuit · court · retrieved Oct 12, 2026

    Published opinion inspected directly. Pages 1-3 confirm dates, panel and preliminary-injunction posture; page 49 affirms Ohio denial, vacates Tennessee grant and remands. Sports contracts fail swap definition; alternatively CEA does not expressly or impliedly preempt these states gambling laws.

  16. 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.”
  17. Tennessee: 'No Chance' games illegal skill machines · CasinoBeats · press · retrieved Oct 10, 2026

    secondary/press source; reports the July 2025 Shelby County Chancery Court three-judge-panel ruling against Torch Electronics' "No Chance Games" machines.

  18. Jackpocket Promo Code: Claim $10 Instant Lottery Bonus · Legal Sports Report · secondary · retrieved Oct 10, 2026

    Lists Jackpocket's operating states/territories (Arizona, Arkansas, Colorado, Idaho, Maine, Massachusetts, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Puerto Rico, Washington D.C., West Virginia); Tennessee is absent.

  19. 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.”
  20. Charitable Gaming in Tennessee · Harbor Compliance · secondary · retrieved Oct 10, 2026

    Secondary compliance-industry source, used because sos.tn.gov blocks automated fetches; states a 5-year continuous-existence requirement that conflicts with a 3-year figure reported elsewhere, flagged as unresolved in the vertical's caveat.

    “The maximum raffle prize for a single location event is $250,000.”
  21. Tennessee becomes latest state to outlaw sweepstakes casinos · Gaming Intelligence · press · retrieved Oct 10, 2026

    secondary/press source quoting bill sponsor Sen. Ferrel Haile on the scope of SB 2136's virtual-currency definition.

    “This bill does not make free games illegal. It primarily targets operation for real money that is being used.”
  22. A Different Kind of Gamble: Tennessee's Approach to Collecting Taxes on Sports Betting Handle · Tennessee Law Review · secondary · retrieved Oct 11, 2026

    Cites Tenn. Code Ann. § 4-49-104(a) and (e)(1) (2025) for the 1.85% handle tax and the 80% local-education-agency distribution.

    “distributed by the [sports wagering advisory] council to the state treasurer for deposit into an account ... administered by the state treasurer for use of local education agencies”
  23. Millionaire for Life · Wikipedia · secondary · retrieved Oct 11, 2026

    Participating-lotteries table row for Tennessee reads "Tennessee / 2026 / C4L" ("C4L" = Cash4Life); game offered in 30 states plus D.C. since Feb. 22, 2026.

    “Tennessee ... 2026 ... C4L”
  24. Tenn. Code Ann. § 4-49-205 — Fantasy Sports Operator Requirements · FindLaw (mirror of Tennessee Code Annotated, Title 4, Chapter 49, Part 2) · statute · retrieved Oct 11, 2026

    Does not itself define "minor"; Tennessee's general age of majority (18) is used elsewhere in this file to infer the DFS minimum age.

    “shall take all commercially reasonable steps to confirm that an individual opening an account is not a minor”
  25. Tenn. Code Ann. § 4-51-108 — Lottery Retailer Requirements and Restrictions · FindLaw (mirror of Tennessee Code Annotated, Title 4, Chapter 51) · statute · retrieved Oct 11, 2026
    “A lottery retailer who allows a person under eighteen (18) years of age to purchase a lottery ticket or share from an electronic or mechanical device”
  26. Tennessee Sports Betting FAQ · Action Network · secondary · retrieved Oct 11, 2026

    Secondary tracker, used for college-sports-betting rules and official-league-data status not found in state regulatory text reviewed.

    “Tennessee prohibits credit card funding of sports wagering accounts.”
  27. Tenn. Comp. R. & Regs. 1350-01-.08 — Sports Gaming Accounts · Cornell Law School LII (mirror of Tennessee Sports Wagering Council rules) · regulation · retrieved Oct 11, 2026
    “credit card funds in any global or single wallet must be segregated from usage in the state of Tennessee”
  28. WKRN coverage of Tennessee's 2025 sports-wagering tax reallocation to schools · WKRN (Nashville) · press · retrieved Oct 11, 2026
    “Up until July 1, 2025, 80% of the privilege tax went to educational initiatives.”
  29. Fantasy Sports Tax · Tennessee Department of Revenue · regulator page · retrieved Oct 10, 2026
    “is a privilege tax imposed at a rate of six percent”
  30. 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.”
  31. 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.”
  32. 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).”
  33. 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.”
  34. 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.”
  35. 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.”
  36. 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.”
  37. 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.”