Gambling Laws in Tennessee

Tennessee has some of the most restrictive gambling laws in the US, with most types deemed illegal. Some progress has been made in recent years though, with online sports betting being freshly legalised.

Which Gambling Activities Are Legal in Tennessee?

Gambling Laws are laid out in Tennessee Code Sections 4-36-101 and 39-17-501, which state that all types are illegal. However, a few select and heavily regulated activities are available. These include the lottery, charitable bingo, DFS and recently - online sports betting.

Playing in Land-Based and Online Casinos

Gambling in casinos is illegal in Tennessee and there are no commercial or tribal casinos permitted to operate in the region. Residents have only one option to enjoy slots and table games: travel to a neighbouring state where laws are not as strict.

Playing casino games online is illegal. There is no avenue for foreign sites to obtain a licence to operate in the state and no appetite for creating one either. Any new online casinos looking to accept residents could face harsh fines and legal proceedings.

Poker Gambling

Not surprising that this activity is also illegal. Since there are no casinos in the state, no poker rooms and standalone halls do not exist here. The Tennessee Poker Tour occasionally operates games, but these are strictly using play chips, with no real money involved.

Online poker is also illegal and none of the top sites such as PokerStars, 888poker and PartyPoker are allowed to operate within state borders.

Games of Bingo

This is legal but only charities are permitted to run bingo games for real money. Dedicated halls or clubs are not permitted in the state. Bingo casinos online are illegal and whilst some do accept residents from Tennessee, playing at any of these would be breaking the law.

Lotto, Keno, Scratch Cards and Instant Win Games

The state was one of the last in the US to legalise such activities, with the Tennessee Lottery launching in 2003 after a referendum showed public support for it. The company offers tickets for various popular draws, including the multistate Powerball and Mega Millions, plus a range of instant win games.

Online lottery gambling is illegal and whilst the state provider has a website, this is only allowed to provide information and results-checking. Interestingly there are plenty of US-based lottery casino sites which do accept residents from the state.

Social Gambling and Online Crypto Casinos

Tennessee generally takes a hardline approach to gambling. Social casinos and free poker sites that use play chips may also be considered illegal if any prizes or promotions are involved. Home-based games of poker are also illegal.

Lootboxes and skins gambling aren't mentioned specifically in Tennessee gambling laws. Given the state's conservative approach, these activities could also be considered illegal under current legislation.

Cryptos are slowly becoming more accepted in Tennessee but as is the case in many other states, they are not yet considered legal tender. That means virtual coins cannot be accepted by any of the limited gambling operators. Those searching for crypto gambling sites can find plenty to choose from online, but like other forms of online gambling - this is illegal.

Tennessee Sports Betting Regulations

Sports betting was legalised in 2020 but residents can only bet online. There are around 13 online sportsbooks licensed to offer markets in Tennessee, with the top providers including BetMGM and WynnBet.

The situation regarding horse race betting is very similar. While this was once legal, the laws were repealed in 2015. The only form of horse racing available is the yearly Iroquois Steeplechase every May, and betting on this is prohibited. Online parimutuel betting on horse racing is legal, but only via one operator - TwinSpires.

Surprisingly, daily fantasy sports betting is legal and Tennessee was the 3rd state to permit the activity in 2016.

Gambling Age Restrictions

The legal gambling age in Tennessee is 18 years old for lottery, bingo, daily fantasy sports and parimutuel betting on horse racing. Residents must be 21 or over to bet on sports.

Tennessee Gambling Tax Regulations

Sports betting operators are required to pay a 1.85% tax on gross revenue. This was recently reduced from the 20% tax rate which was applied before July 2023.

Gambling winnings are not typically taxed at the state level, as there is no personal income tax rate. However, sportsbooks and the Tennessee Lottery must withhold a 25% tax on winnings. This increases to 28% if you choose not to provide the operators with your social security number.

History of Gambling Laws in Tennessee

Tennessee's laws date back to 1906 when all gambling was banned outright. Parimutuel betting on horse racing was legalised in 1987 with the passing of the Racing Control Act, but the laws were repealed in 2015. Lottery gambling was legalised in 2002 by state referendum, with the Tennessee Lottery launched in 2003.

The legality of poker gambling was clarified in 2005, with the state deeming the activity illegal. Bingo games offered by charitable organisations were then given the green light in 2010.

Daily fantasy sports betting was legalised in 2016 and online sports and parimutuel betting were finally permitted in 2020.

Key Facts

• In-person and online casino gambling is illegal in Tennessee.

• Online and offline Poker gambling is illegal.

• Bingo gambling is permitted but only via charitable organisations.

• Playing bingo online is illegal.

• Lottery gambling is available but only via the Tennessee Lottery. Online lottery gambling remains illegal.

• Land-based sports betting is illegal, but online betting is legal via a few licensed operators.

• Parimutuel betting on horse racing is legal, but only online.

• Daily fantasy sports betting is legal.