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Stan Fox
Stan Fox is an accomplished author specializing in legal gambling content and US gambling laws. With a deep understanding of the intricate regulatory landscape, he combines his passion for writing with his expertise in the field to provide readers with informative and engaging articles. He has been writing for LetsGambleUSA.com since 2019.

Tennessee is very prohibitive about gambling. Until quite recently, the only legal options were the state lottery and charitable gambling in the form of bingo and raffles.

The Volunteer State has no casinos, and legislative attempts to introduce Las Vegas-style gaming have failed to gain any serious momentum. The state has no federally recognized tribes and therefore no Native American casinos.

State laws permitted horse race betting for almost three decades, but opposition from individual counties prevented potential investors from actually building a racetrack. The relevant law was eventually repealed in 2015.

Which makes it all the more surprising, then, that Tennessee legalized online sports betting in the spring of 2019. In doing so, it became the first state to approve mobile betting before casino gaming.

Allowed?Notes
Land-based gamblingNo
Online gambling NoApart from sports betting and DFS
Sports bettingYesOnline only
LotteryYes
Minimum gambling age18 (lottery), 12 (sports betting)

Tennessee Unlawful Gambling

According to Tennessee Code § 39-17-502, "a person commits an offense who knowingly engages in gambling" that has not been licensed by the state.

"Gambling" means "risking anything of value for a profit whose return is to any degree contingent on chance, not including lawful business transactions."

It is a defense to prosecution if the person "in good faith relied upon the representations of a gambling promoter that a gambling activity was lawful." 

Therefore, unlike some states, which target the operator and not the gambler, the mere act of placing a bet in Tennessee is a Class C misdemeanor, which carries a fine ranging from $1 to $50. 

However, state laws do not mention online gambling specifically, and the above law has, to date, never been enforced against residents playing on offshore sites. This does not mean it may not be enforced in the future.

Gambling in Tennessee is covered by Tennessee Code § 4-36-101 et seq. and 39-17-501 et seq. The minimum gambling age is 18 for the lottery and 21 for sports betting.

Online Gambling in Tennessee

Online sports betting and daily fantasy sports contests are the only forms of licensed and regulated online gambling in Tennessee. Online casino and poker are unregulated and are likely to remain that way for the foreseeable future.

Tennessee laws explicitly prohibit the placing of bets with unlicensed operators. However, its laws do not mention online gambling, which makes it impossible to say unequivocally whether this statute can be applied to users of offshore gambling sites, as it has never been enforced against these types of players.

At the moment, the odds of an expanded Tennessee online gambling market are virtually non-existent.

Tennessee Casinos

As mentioned, there are no land-based casinos in Tennessee. State residents must drive to Mississippi, Missouri, Kentucky, or North Carolina to enjoy legal slots or table games.

Tennessee Poker

Poker players are in a similar situation to casino gamblers. The only way to enjoy the game legally in Tennessee is to participate in social games with no money at stake, such as the ones organized by the Tennessee Poker Tour. Or you can head to a casino in another state.

Tennessee's laws do not explicitly exempt private home poker games, although there is little evidence authorities target non-commercial games with a few hundred dollars on the table.

Online poker is unregulated, although many offshore sites accept players from Tennessee.

Tennessee Sports Betting

The Tennessee legislature's passage of the state's Sports Gambling Act mid-2019 was a big surprise, not least to Gov. Bill Lee who grumbled that sports betting was “not consistent with the values of this state.” Nevertheless, Lee begrudgingly allowed the bill to lapse into law, minus his signature.

Tennessee was the first state to pass an online-only sports betting bill. However, it came with some operator/player-unfriendly provisions. First, was the 10% minimum hold that it imposed on operators.  

The hold is the percentage of the total handle a sportsbook keeps after winnings are returned to customers. In Las Vegas, for example, this is typically between 5% and 6%. Tennessee's mandatory high-hold percentage therefore forced operators to offer less competitive odds.

Fortunately, the hold percentage was scrapped in 2023 but it was replaced with another operator-unfriendly model. From April 1, a 20% tax on gross revenue was replaced by a 1.85% tax on handle -- the amount of bets an operator takes before winnings are paid out. Tennessee is the only state in the US to adopt this model, which squeezes operator profit margins forcing them to tweak the odds in their favor versus the player.

Despite this, there are currently 11 sports betting apps serving the Tennessee market, including FanDuel, BetMGM, DraftKings, and Caesars.

Tennessee Parimutuel Betting

Like its neighbor Kentucky, Tennessee once had a thriving horse racing industry -- until 1905 when race betting was banned by the legislature. Over 80 years later, the state passed the Racing Control Act, which legalized parimutuel betting and established the Tennessee State Racing Commission to oversee a future industry.

Several new racetracks were proposed, but all were defeated by local opposition. With no industry to regulate, the racing commission was disbanded in 1998. Parimutuel betting remained nominally legal until the Racing Control Act was rescinded by the legislature in 2015.

Tennessee Daily Fantasy Sports

Tennessee was the third state to license and regulate DFS and the first state where local legislators overturned a negative Attorney General opinion.

In April 2016, Tennessee AG Herbet Slatery opined that participating in DFS contests within state lines constituted illegal gambling. However, on April 28, 2016, Gov. Bill Haslam signed a bill legalizing this form of gambling after it received overwhelming approval in both the House (67-17) and the Senate (27-2).

The Secretary of State in Tennessee was tasked with overseeing the industry, and operators are now required to pay a $50K licensing fee and a 6% tax on revenue generated by Tennessee residents. All high-profile DFS sites, including DraftKings, FanDuel, Fantasy Draft, and Yahoo DFS, are allowed to offer their services to local fans.

Tennessee Lotteries

Tennessee was among the last states to legalize lottery games. The referendum that decided this matter was held in November 2002 and the first tickets were sold in January 2004. Since then, the lottery has generated over $15 billion in sales, and about 30% of that money was used to help the local education system.

Both single- and multi-state draw games are available, which gives Tennessee residents access to both Powerball and Mega Millions. Licensed lottery retailers are also allowed to offer 14 different Instant Win games. The lottery website serves for information purposes only and is not authorized to sell any tickets online.

Tennessee Bingo

Bingo is legal solely as a form of charitable gambling – you won’t find any commercial bingo parlors in Tennessee. Online bingo is unregulated, and there’s little chance of a change to the status quo in the foreseeable future.

Tennessee Gambling FAQ

Does Tennessee have casinos?

That's a big fat no. Tennessee has no commercial or tribal casinos. Your best bet is to head to Tunica, Miss.

Is online gambling legal in Tennessee?

The only forms of online gambling permitted are sports betting and daily fantasy sports. Online casino and poker are not licensed or regulated.

Is sports betting legal in Tennessee?

Yes, but only online. There are currently 11 apps serving the market, including DraftKings, FanDuel, and Caesars Sportsbook.

Can I play poker in Tennessee?

Not legally for real money, no. With no casinos, no poker rooms, and no regulated online poker, Tennessee is a poker-dry state. Private home games are nominally illegal, too, although this is not strictly enforced for low-stakes, non-commercial games.

Can I play daily fantasy sports in Tennessee?

Yes, Tennessee legalized DFS in 2016.

Does Tennessee have a lottery?

Yes. Established in 2004, the Tennessee Lottery offers intra-state and multi-state draw games, plus instant-win games. There are no online sales or games.

Tennessee Code

28-3-106. Recovery of gambling losses.

Actions to recover money or goods lost at any kind of gambling or betting, and paid or delivered:
(1) If brought by the loser, shall be commenced within ninety (90) days next after such payment or delivery;

(2) If brought for the use of the spouse, child or children, or next of kin, within twelve (12) months from the expiration of the ninety (90) days;

(3) If by a creditor of the loser, within twenty-four (24) months from the end of the ninety (90) days.

Anti-Gambling Laws

39-17-501. Part definitions.

As used in this part, unless the context otherwise requires:

(1) 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. For the purposes of this chapter gambling does not include:

(A) A lawful business transaction;

(B) Annual events operated for the benefit of nonprofit organizations that are authorized pursuant to a two-thirds (2/3) approval of the general assembly, so long as such events are not prohibited by the state constitution;

(C) A state lottery of the type in operation in Georgia, Kentucky, and Virginia in 2000 and authorized by amendment to the Constitution of Tennessee, if the lottery is approved by the general assembly; or

(D) A fantasy sports contest as defined in § 47-18-1602 and conducted in accordance with the Fantasy Sports Act, compiled in title 47, chapter 18, part 16.

(2) "Gambling bet" means anything of value risked in gambling;

(3) "Gambling device or record" means anything designed for use in gambling, intended for use in gambling, or used for gambling;

(4) "Lawful business transaction," as used in subdivision (1), includes any futures or commodities trading;

(5) "Lottery" means the selling of anything of value for chances on a prize or stake; and

(6) "Profit" means anything of value in addition to the gambling bet.

39-17-502. Gambling - Defenses. -

(a) A person commits an offense who knowingly engages in gambling.

(b) It is an affirmative defense to prosecution under this section, which must be proven by a preponderance of the evidence, that a person reasonably and in good faith relied upon the representations of a gambling promoter that a gambling activity was lawful because it was an authorized annual event pursuant to title 3, chapter 17. It is not an affirmative defense to prosecution under this section that a person engaged in a gambling activity that was not an authorized type of lottery game pursuant to title 3, chapter 17.

(c) The offense of gambling is a Class C misdemeanor.

39-17-503. Gambling promotion.

(a) A person commits an offense who knowingly induces or aids another to engage in gambling, and:
(1) Intends to derive or derives an economic benefit other than personal winnings from the gambling; or
(2) Participates in the gambling and has, other than by virtue of skill or luck, a lesser risk of losing or greater chance of winning than one (1) or more of the other participants.
(b) The offense of gambling promotion is a Class B misdemeanor.

39-17-504. Aggravated gambling promotion.

(a) A person commits an offense who knowingly invests in, finances, owns, controls, supervises, manages or participates in a gambling enterprise.
(b) For purposes of this section, "gambling enterprise" means two (2) or more persons regularly engaged in gambling promotion as defined in § 39-17-503.
(c) The offense of aggravated gambling promotion is a Class E felony.

39-17-505. Possession of gambling device or record - Forfeiture. -

(a) (1) A person commits an offense who knowingly owns, manufactures, possesses, buys, sells, rents, leases, stores, repairs, transports, prints, or makes any gambling device or record.

(2) It is not an offense for a person to own or possess in this state a lottery ticket originating from a state in which a lottery is lawful, if the ticket is not owned or possessed for the purpose of resale.

(3) It is not an offense for a person to knowingly own, manufacture, possess, buy, sell, rent, lease, store, repair, transport, print or make any gambling device or record if the device or record is owned, manufactured, possessed, bought, sold, rented, leased, stored, repaired, transported, printed or made pursuant to the provisions of title 4, chapter 51, part 1 and title 39, chapter 17, part 6.

(4) It is not an offense for a person to knowingly own, manufacture, possess, buy, sell, rent, lease, store, repair, transport, print or make any gambling device or record if the device or record is for the purpose of conducting an annual event pursuant to the provisions of title 3, chapter 17, and part 6 of this chapter.

(5) It shall not be an offense for a manufacturer of gambling devices to knowingly own, manufacture, assemble, design, possess, buy, sell, rent, lease, store, repair, transport, print or make any gambling device or record solely intended for gambling outside of this state and in compliance with the laws of the United States. The requirement that the manufacturing, selling or leasing of gambling devices be intended solely for gambling outside of the state shall not restrict uses of the gambling devices by the manufacturer that are ancillary or accessorial to the manufacturing, selling or leasing process or business, including, but not limited to, using the gambling devices for research and development, employee training, compliance program initiatives, testing and quality assurance processes, showroom display, leasing or purchasing or selling of gambling devices or parts or equipment, storage or warehousing of gambling devices or parts or equipment, maintenance or refurbishing of gambling devices or parts or equipment, and safekeeping of gambling devices or parts or equipment for future litigation. Also considered ancillary or accessorial to the manufacturing, selling or leasing process or business shall be the use or operation of computers, computer servers, and similar electronic devices, hardware and software, and all gambling records, data or information owned, maintained or stored thereupon, or produced, generated, created, printed, transported or transmitted therefrom, whether paper, electronic or otherwise, in conjunction with legal gambling and in compliance with the laws of the United States. Ancillary or accessorial uses shall not include use of the gambling devices or records that would allow persons physically present in the state of Tennessee to place gambling bets. This subdivision (a)(5) shall not apply unless the manufacturer meets or exceeds federal government requirements pursuant to 15 U.S.C. Section 1171 et seq., and any regulations promulgated pursuant to 15 U.S.C. Section 1171 et seq., and provides the secretary of state with a copy of the request for registration pursuant to 15 U.S.C. Section 1173, together with copies of each gambling license or permit issued by any regulatory authority, including but not limited to any state, country, federally recognized tribe or United States territory, and pays a ten thousand dollar ($ 10,000) fee prior to January 1st of that year. Additionally, the manufacturer shall provide the secretary of state with proof of annual registration under 15 U.S.C. Section 1173 with the office of the United States Attorney General within thirty (30) days of the receipt thereof.

(b) (1) Any gambling device or record is contraband and shall be subject to seizure, confiscation and forfeiture in accordance with the forfeiture provisions, codified in chapter 11, part 7 of this title.

(2) After a gambling device or record has been forfeited to the state pursuant to chapter 11, part 7 of this title, the court hearing the criminal charges resulting in the forfeiture shall order the destruction of the device or record. If the district attorney general or law enforcement agency does not believe that a gambling device or record should be destroyed in a particular case, the district attorney general shall petition the court for an alternate disposition of the record or device. If the court finds that the proposed alternate disposition reasonably ensures that the device will not be used in an unlawful manner in this state, the court may grant the petition and order the disposition of the device or record in accordance with the petition.

(c) Possession of a gambling device or record is a Class B misdemeanor.

39-17-506. Lotteries, chain letters and pyramid clubs.

(a) A person commits an offense who knowingly makes or aids in the making of any lottery. For the purposes of this section, "makes or aids in the making of any lottery" does not include:

(1) Ownership or possession in this state of a lottery ticket originating from another state in which a lottery is lawful, if the ticket is not owned or possessed for the purpose of resale; provided, however, that nothing in this subdivision (a)(1) shall be construed as preventing the sale of lottery tickets or shares under the authority of the Tennessee Education Lottery Corporation; or the sale of tickets, shares, chances or similar records for an annual event pursuant to the provisions of title 3, chapter 17, and part 6 of this chapter;

(2) The Tennessee Education Lottery operated pursuant to title 4, chapter 51, part 1; or

(3) An annual event operated pursuant to title 3, chapter 17, and part 6 of this chapter.

(b) For the purposes of this section, "makes or aids in the making of any lottery" includes the organization of, membership in, or solicitation of persons for membership in any chain letter club, pyramid club, or other group organized under any plan whereby anything of value to be given by a member of the club or group is to be given to any other member of the club or group, which plan includes any provision for the increase in membership through a chain process of new members securing other new members and thereby advancing themselves in the group to a position where the members in turn receive things of value from other members.

(c) An offense under this section is:

(1) A Class C misdemeanor if the aggregate amount of money involved in the lottery, chain letter, or pyramid club is fifty dollars ($50.00) or less;

(2) A Class B misdemeanor if the aggregate amount of money involved in the lottery, chain letter, or pyramid club is more than fifty dollars ($50.00) but less than two hundred fifty dollars ($250);

(3) A Class A misdemeanor if the aggregate amount of money involved in the lottery, chain letter, or pyramid club is two hundred fifty dollars ($250) or more but less than ten thousand dollars ($10,000); or

(4) A Class E felony if the amount of money involved in the lottery, chain letter, or pyramid club is ten thousand dollars ($10,000) or more.

39-17-507. Customer referral rebates unlawful.

(a) With respect to a consumer sale, consumer credit sale or consumer lease, the seller or lessor may not give or offer to give a rebate or discount or otherwise pay or offer to pay value to a buyer or lessee as an inducement for a sale or lease in consideration of the buyer or lessee referring or giving to the seller or lessor the names of prospective customers or lessees, or otherwise aiding the seller or lessor in making a sale or lease to another person, if the earning of the rebate, discount, commission or other value is contingent upon the occurrence of an event subsequent to the time the buyer or lessee agrees to buy or lease.

(b) If a buyer or lessee is induced by a violation of this section to enter into a consumer sale, consumer credit sale or consumer lease, then such transaction is hereby declared to be a lottery and the agreement is unenforceable by the seller or lessor, and the buyer or lessee, at the buyer's or lessee's option, may rescind the agreement or retain the goods delivered and the benefits of any services performed, without any obligation to pay for them.

(c) Any person offering to sell or lease goods or services in violation of this section commits a Class C misdemeanor.

39-17-508. Premiums at fairs.

It is lawful and not in violation of this part for a person, upon complying with the rules of public fairs, to enter and contend for any and all such premiums as may be offered at such fairs.

39-17-509. Preemption.

The general assembly, by enacting this part, intends to preempt any other regulation of the area covered by this part. No governmental subdivision or agency may enact or enforce a law that regulates or makes any conduct in the area covered by this part an offense, a violation, or the subject of a criminal or civil penalty or sanction of any kind.

The voters of Tennessee have amended the State's Constitution to permit a state lottery.