Tennessee Sports Betting: Is Online Gambling Legal in 2026?

Tennessee Sports Betting: Is Online Gambling Legal in 2026?

Tennessee is the only U.S. state with an exclusively mobile sports betting market—no casinos, no retail books, no exceptions. Here's what's legal, what's not, and what's still being fought over in 2026.

James Guill
Published on

Sports betting is legal in Tennessee, but only online. Tennessee was first U.S. state to legalize an exclusively mobile/online sports betting market. There are no retail sportsbooks or land-based casinos in the state . 

Tennessee's regulated sports wagering market has matured into a high-volume digital ecosystem overseen by the Tennessee Sports Wagering Council (SWC). While legal sports betting thrives, the state has taken a strict stance against "pick'em" daily fantasy games (forcing a shift to peer-to-peer formats) and is actively fighting the rise of prediction markets. Understanding exactly which forms of gambling are available is crucial for anyone betting in Tennessee.

BETTING-BY-REGION

Mobile Sportsbooks

|

8 apps available

DraftKings logo
FanDuel logo
BetMGM logo

Prediction Markets

|

6 markets available

Kalshi logo
Polymarket logo
Robinhood Prediction Markets logo

Online Casinos

Sweepstakes Casinos

|

Available statewide

Daily Fantasy Sports

|

Available statewide

Legal Age:21|Mobile:Yes

Tennessee Online Sports Betting: Mobile-Only and Fully Regulated

Tennessee's licensed sports betting market is structurally unique in the United States. The Tennessee Sports Gaming Act, passed in 2019, created an online-only sports wagering market, meaning any operator that meets the licensing criteria can apply, and no in-person sportsbook locations are permitted under any circumstances. This choice set Tennessee apart from every other state that had legalized sports betting at the time.

Tennessee also has a unique tax model: licensed operators pay a privilege tax of 1.85% on their total betting handle, rather than a percentage of their gross gaming revenue. It is a controversial structure that has squeezed margins for smaller books and accelerated market consolidation, but it remains in force as of 2026.

Bettors must be at least 21 years old to use Tennessee online sportsbooks. Geolocation is also mandatory; you must be physically located in Tennessee to bet at the state’s online sportsbooks. The SWC also maintains responsible gambling requirements for TN operators, including self-exclusion programs and deposit limit tools, which all licensed operators are required to offer.

Tennessee Sports Betting Law: Key Rules and Restrictions

  • Retail Betting: ❌ Illegal. There are no physical sportsbooks in the state; only online sports betting is legal.
  • Mobile Betting: ✅ Legal. 100% of the regulated market is digital.
  • Taxation: Licensed operators pay 1.85% of their total handle (total money wagered).
  • Minimum Age: 21 years old to register and wager.
  • Restrictions: No prop bets on individual college athletes. The rules around in-play wagering on college sports remain subject to regulatory interpretation. bettors should confirm current restrictions with their preferred sportsbook.
  • Responsible Gambling: All licensed operators must provide self-exclusion options and deposit limit tools as required by the SWC.

List of Licensed Tennessee Sportsbook Operators

As of 2026, Tennessee has approximately 12 licensed mobile sportsbook operators active in the state.. Here’s the full list of Tennessee sportsbooks available as of June 2026.

SportsbookParent CompanyLaunch YearStandout Feature
Action 24/7Action 247, Inc.2020Locally owned; TN-specific promos
Bally BetBally's Corp2023Integrated loyalty with Bally's Casinos
BetlyGamewise2022Simple, no-frills interface
BetMGMMGM Resorts2020Best rewards program (MGM Rewards)
Caesars SportsbookCaesars Entertainment2021Massive odds boosts on NFL
DraftKingsDraftKings Inc.2020Best overall betting variety
theScore BetPENN Entertainment2025New Flagship (Replaced ESPN BET)
Fanatics SportsbookFanatics2023Earn "FanCash" for merchandise
FanDuelFlutter Entertainment2020#1 Market Share; Fastest App
Hard Rock BetHard Rock Digital2022Slick, modern "Gen Z" interface
VIP PlayKeyStar Corp2024Focused on high-rollers (formerly ZenSports)

Top 5 Tennessee Sportsbook Apps Reviewed: The Best Online Sportsbooks

FanDuel: Best For: Overall Experience & Speed

FanDuel earns the top spot among sports betting apps in Tennessee. FanDuel was one of the the first licensed operators to master the "Same Game Parlay," and their app remains the fastest and most reliable mobile betting platform in the state. Because Tennessee is online-only, app performance is essential, and FanDuel rarely crashes even during peak-traffic Tennessee Titans or Tennessee Volunteers games. Its consistent #1 market share position in the state is no accident; it reflects a product that genuinely outperforms the competition on speed, stability, and breadth of markets.

DraftKings: Best For: Market Variety

If you want to bet on obscure sports or construct highly specific player props, DraftKings is the sports betting app you need. It offers the deepest menu of betting markets in Tennessee. The DraftKings "Dynasty Rewards" loyalty program is also excellent for frequent bettors who want to extract maximum value from every bet. DraftKings covers a range of major sports, from the NFL and NBA to PGA Tour events, major league soccer, and international soccer, making it the go-to platform for bettors who want variety and depth.

BetMGM: Best For: Parlays & Rewards

As the official betting partner of the Tennessee Titans, BetMGM offers exclusive odds boosts for NFL games throughout the season. Their "Lion's Boost" (a refernece to BetMGM’s mascot and not the Michigan NFL team) is a daily staple for bettors looking for enhanced value. The integration with MGM Rewards, one of the most recognized loyalty programs in the hospitality industry, allows you to earn comps redeemable for trips to Las Vegas properties simply by placing bets on your phone in Nashville or Memphis.

Action 24/7: Best For: Local "Home Team" Vibes

Action 24/7 is the only locally owned and operated licensed online sportsbook in the Tennessee market. Action 24/7 is not as polished as the major national online sportsbooks, but it offers unique "TN Special" markets and a distinct focus on the Vols, Titans, Nashville Predators, and Memphis Grizzlies that you won’t always find elsewhere. For Tennessee residents who want to bet with a platform that has genuine roots in the state, Action 24/7 is the obvious choice.

Fanatics Sportsbook: Best For: Merch Lovers

Fanatics is a relative newcomer that has quickly gained traction in the Tennessee online betting market. The sportsbook’s merchandiser roots are on full display in its betting platform. The "FanCash" system gives you up to 5% of your bet back as credit redeemable for merchandise on the Fanatics store, including Titans jerseys, Vols hats, and Predators gear. For sports fans who were already spending money on licensed merchandise, Fanatics Sportsbook effectively turns every wager into a partial shopping credit.

Prediction Market Betting Apps: Tennessee's Most Contested Legal Battleground

Tennessee is currently one of the most hostile states for the emerging prediction market industry. In April 2025, the Tennessee Sports Wagering Council (SWC) formally requested that the U.S. Commodity Futures Trading Commission (CFTC), the federal agency that regulates derivatives and futures markets, block platforms such as Kalshi and Robinhood from operating sports prediction markets in the state, arguing that these products constitute unlicensed sports wagering under Tennessee law.

This is a genuinely novel legal conflict. Prediction market platforms like Kalshi operate under federal CFTC oversight as regulated event contracts, a classification that their operators argue preempts state-level sports betting regulations. The SWC disagrees, and the outcome of this jurisdictional dispute will have implications far beyond Tennessee. For now, the legal status of these platforms in the state remains contested, and bettors should proceed with caution.

Prediction Market Legal Status in Tennessee

  • DraftKings Predictions: ❌ Unavailable. DraftKings has geoblocked Tennessee users from its prediction app to avoid conflict with its licensed sports betting operation in the state.
  • Kalshi / Robinhood: ⚠️ Contested. While federally regulated by the CFTC, the SWC considers these products "illegal wagers" under Tennessee law. They may be technically accessible, but users face potential regulatory friction and legal uncertainty.

All Available Prediction Market Operators in Tennessee

  • Kalshi (Status: Active but legally contested by the SWC)
  • Robinhood (Status: Active but legally contested by the SWC)
  • Note: DraftKings Predictions is geoblocked in Tennessee.

Online Casinos in Tennessee: Still Illegal in 2026

Tennessee maintains some of the strictest anti-casino laws in the United States. There are no land-based commercial casinos anywhere in the state, no tribal gaming operations, and no licensed online casino platforms. Legislation to legalize online casino gaming has never gained serious traction in the Tennessee government, and the conservative-leaning legislature has shown no appetite for expanding the state's legal gambling framework beyond sports wagering.

The absence of a physical casino industry in Tennessee is itself a significant barrier to future iGaming legalization. In states where online casino gaming has been legalized, such as New Jersey, Pennsylvania, and Michigan, the push was supported by established land-based casino operators seeking to extend their brands into the digital space. Tennessee has no such lobbying base, making the path to regulated online casino gaming exceptionally long and unlikely (for now).

Sweepstakes Casinos in Tennessee: The Legal Casino Alternative

With no commercial casinos and no licensed iGaming market, sweepstakes casinos are the primary legal outlet for Tennessee residents who want to play slots, table games, and poker online. These platforms operate under a sweepstakes promotional model. Instead of accepting direct cash wagers, they distribute free "Sweeps Coins" that players can use to participate in games and redeem for real prizes. This model is legal under federal sweepstakes law and does not require state-level gambling authorization.

Tennessee has no specific state statutes that prohibit these operators from serving Tennessee residents. This means Tennessee players can legally access all major sweepstakes casino platforms without restriction, making this the most accessible form of legal online gambling available in the state outside of sports betting and daily fantasy sports.

Full List of Legal Sweepstakes Casino Platforms Available in Tennessee

Casino BrandGame FocusParent CompanyRedemption Methods
Stake.usLive Dealer, Table Games, CryptoSweepsteaks LimitedCrypto Only (Instant)
WOW VegasVegas-Style SlotsWoW EntertainmentTrustly (Bank), Skrill, Apple Pay
McLuckProgressive Jackpots, SlotsB2ServicesBank Transfer, Gift Cards
High 5 CasinoOriginal Slots (High 5 Games)High 5 GamesBank, PayPal, Gift Cards
Chumba CasinoProprietary Slots, BlackjackVGWBank Transfer, Gift Cards
PulszSlots, ScratchcardsYellow Social InteractiveBank, Skrill, Gift Cards
Hello MillionsSlots (Pragmatic Play)B2ServicesBank Transfer, Gift Cards
LuckyLand SlotsAndroid App, SlotsVGWBank Transfer, Gift Cards
Global PokerPeer-to-Peer PokerVGWBank Transfer, Gift Cards
Zula CasinoSlots, Fish GamesSCPS UnlimitedBank Transfer, Skrill
SportzinoSports Prediction & SlotsSSPS UnlimitedBank Transfer, Skrill
Fortune WinsFish Games, Progressive SlotsSocial Gaming LLCBank Transfer, Skrill
NoLimitCoinsSlots, Fish GamesA1 DevelopmentBank Transfer, Gift Cards
Funrize Slots, FishingA1 DevelopmentBank Transfer, Gift Cards
Crown CoinsSlotsGoGamingBank Transfer, Skrill
Real PrizeSlotsRealplayBank Transfer, Gift Cards
Spree CasinoSlotsPlay Spree LtdBank Transfer, Gift Cards
Clubs PokerPeer-to-Peer PokerKHK GamesBank Transfer

Top 5 Recommended DFS Apps for Tennessee Players

PrizePicks (Arena Mode): Best For: Casual Player Prop Fans

PrizePicks is our top-ranked pick'em platform in the Tennessee. The app groups you into a "pod" with other players who selected similar entry fees. If your entry scores the highest in the pod, you win the pot. It preserves the intuitive "More/Less" simplicity that made PrizePicks popular while satisfying Tennessee's peer-to-peer regulatory requirement.

Pro Tip: Look for "Tacos" on Tuesdays; these are discounted projections (for example, a star player's points line lowered significantly) that are  designed to boost your entry score.

Underdog Fantasy: Best For: Best Ball & High Multipliers

Underdog offers two distinct experiences for Tennessee players. First, it’s the undisputed leader in "Best Ball." Draft a team during the NFL preseason, and let the platform automatically set your optimal lineup each week, with no roster management required. Second, the "Champions" mode offers peer-to-peer pick'em contests where a perfect entry in a high-stakes tournament can return up to 100x your initial stake.

Pro Tip: Underdog's user interface is widely regarded as the most stylish in the DFS industry. It is fast, clean, and perfectly suited for drafting NFL or NBA teams in just a few minutes.

DraftKings Daily Fantasy: Best For: Big Money Hunters

If you want to turn a small entry fee into a life-changing prize, DraftKings is the only realistic venue for it. The site’s "Classic" salary cap mode has you build a roster of nine players under a $50,000 budget and features the largest prize pools of any DFS platform operating in Tennessee. DraftKings DFS covers nearly every major sport, from the NFL and NBA to PGA Tour events and eSports titles like League of Legends.

Pro Tip: Try the "Showdown" mode for primetime NFL games, you draft just six players from the single game being played that night, making it the fastest and most accessible DFS format for casual players.

Sleeper: Best For: Social Play & Community Chat

Sleeper began as a season-long fantasy platform and has since built a compelling DFS product called "Picks." In Tennessee, this operates as "Picks vs. Friends,", compliant with the state's peer-to-peer requirement. The app is built around social interaction: you can see what your friends are picking, copy their entries, or enjoy the satisfaction of watching them lose a bad call.

Pro Tip: If you already manage your season-long fantasy league on Sleeper, using its DFS product is completely seamless, it runs on the same wallet and the same app, with no separate account required.

FanDuel DFS: Best For: NBA & Roster Simplicity

While structurally similar to DraftKings, FanDuel's DFS product is particularly popular among NBA fans because it uses a cleaner roster structure, dropping the "Utility" flex position in favor of a more straightforward lineup format that is easier for beginners to navigate. The "Single Game" contests are also consistently well-attended and offer strong value for players who prefer to focus on one matchup at a time.

Pro Tip: FanDuel frequently issues free-play vouchers for their DFS product to active users of their licensed sportsbook app, check your promotions tab regularly, as these offers are often time-sensitive.

Full List of Licensed DFS Operators Available in Tennessee

DFS BrandGame Types Available in TNMobile App Best Feature
PrizePicksArena (Peer-to-Peer Picks)✅ YesEasiest "Pick'em" interface
Underdog FantasyChampions (P2P Picks), Best Ball✅ YesHuge NFL Best Ball tournaments
DraftKings DFSSalary Cap, Snake Drafts, Showdown✅ YesMassive Millionaire Maker contests
FanDuel DFSSalary Cap, Snake Drafts✅ YesBest mobile interface for roster building
SleeperPicks vs. Friends, Season-Long✅ YesIntegrated season-long leagues & chat
Betr PicksPeer-to-Peer Picks✅ YesMicro-betting focus
DabbleSocial DFS (Copy Picks)✅ Yes100% Social feed driven
Yahoo FantasySalary Cap, Season-Long✅ YesIntegration with Yahoo Sports
OwnersBoxWeekly Fantasy, Lightning Lineups✅ YesUnique "SuperFlex" formats
RealTime FantasySeason-Long, Daily Contests✅ YesDeep customization for leagues
Vivid PicksPeer-to-Peer Picks✅ YesIntegrated with ticket purchasing
DataForce DFSSalary Cap🌐 WebHigh-stakes focused

Top 5 Recommended DFS Apps for Tennessee Players

PrizePicks (Arena Mode): Best For: Casual Player Prop Fans

Despite being required to operate in "Arena" mode in Tennessee, where you compete against other users rather than the house, PrizePicks remains the top-ranked pick'em platform in the state. The app groups you into a "pod" with other players who selected similar entry fees. If your entry scores the highest in the pod, you win the pot. It preserves the intuitive "More/Less" simplicity that made PrizePicks popular while satisfying Tennessee's peer-to-peer regulatory requirement.

Pro Tip: Look for "Tacos" on Tuesdays, these are discounted projections (for example, a star player's points line lowered significantly) that are essentially free wins designed to boost your entry score.

Underdog Fantasy: Best For: Best Ball & High Multipliers

Underdog offers two distinct experiences for Tennessee players. First, they are the undisputed leaders in "Best Ball," draft a team during the NFL preseason and let the platform automatically set your optimal lineup each week, with no roster management required. Second, their "Champions" mode offers peer-to-peer pick'em contests where a perfect entry in a high-stakes tournament can return up to 100x your initial stake.

Pro Tip: Underdog's user interface is widely regarded as the most stylish in the DFS industry. It is fast, clean, and perfectly suited for drafting NFL or NBA teams in just a few minutes.

DraftKings Daily Fantasy: Best For: Big Money Hunters

If you want to turn a small entry fee into a life-changing prize, DraftKings is the only realistic venue to do it. Their "Classic" salary cap mode, build a roster of nine players under a $50,000 budget, features the largest prize pools of any DFS platform operating in Tennessee. They cover nearly every major sport, from NFL and NBA to PGA Tour events and eSports titles like League of Legends.

Pro Tip: Try the "Showdown" mode for primetime NFL games, you draft just six players from the single game being played that night, making it the fastest and most accessible DFS format for casual players.

Sleeper: Best For: Social Play & Community Chat

Sleeper began as a season-long fantasy platform and has since built a compelling DFS product called "Picks." In Tennessee, this operates as "Picks vs. Friends" or contested pools, fully compliant with the state's peer-to-peer requirement. The app is built around social interaction: you can see what your friends are picking, copy their entries, or enjoy the satisfaction of watching them lose a bad call.

Pro Tip: If you already manage your season-long fantasy league on Sleeper, using their DFS product is completely seamless, it runs on the same wallet and the same app, with no separate account required.

FanDuel DFS: Best For: NBA & Roster Simplicity

While structurally similar to DraftKings, FanDuel's DFS product is particularly popular among NBA fans because it uses a cleaner roster structure, dropping the "Utility" flex position in favor of a more straightforward lineup format that is easier for beginners to navigate. Their "Single Game" contests are also consistently well-attended and offer strong value for players who prefer to focus on one matchup at a time.

Pro Tip: FanDuel frequently issues free-play vouchers for their DFS product to active users of their licensed sportsbook app, check your promotions tab regularly, as these offers are often time-sensitive.

Timeline of Legal Gambling in Tennessee

Year EventImpact
2016DFS LegalizationTennessee becomes the first state to formally legalize and regulate Daily Fantasy Sports, setting a national precedent.
2019Sports Betting ActThe Tennessee Sports Gaming Act passes without the Governor's signature, creating the first online-only regulated sports wagering market in the U.S.
2020Launch DayOn November 1, legal sports betting goes live with four licensed operators: DraftKings, FanDuel, BetMGM, and Action 24/7.
2022Regulatory TransitionOn January 1, 2022, regulatory authority for sports wagering transfers from the Tennessee Education Lottery to the newly formed Sports Wagering Advisory Council (SWAC), signaling a shift toward stricter, dedicated oversight of the licensed market.
2023Tax ReformTennessee shifts from a 20% revenue tax to a 1.85% handle tax, a unique model designed to stabilize state tax revenue regardless of operator profitability.
20242024 DFS CrackdownThe SWC forces Pick'em apps to switch to peer-to-peer models; PrizePicks launches "Arena" mode in Tennessee.
2025Prediction Market FightPrediction Market Fight The SWC issues formal letters to the CFTC requesting that prediction markets be blocked in Tennessee, cementing the state's stance against unlicensed wagering products.

Responsible Gambling Resources in Tennessee

Tennessee takes responsible gambling seriously to ensure that sports betting remains a safe and enjoyable activity for all residents. Licensed sportsbook operators are required by the Tennessee Sports Wagering Council (SWC) to provide a variety of tools and resources to help bettors manage their betting activity and prevent gambling addiction.

Self-Exclusion Programs

Tennessee offers a voluntary self-exclusion program that allows individuals to restrict their access to all licensed online sportsbooks in the state. By enrolling in this program, bettors can block themselves from placing wagers for a specified period, helping those who recognize they need a break from gambling.

Deposit and Time Limits

Licensed sportsbooks in Tennessee provide options for users to set deposit limits, wager limits, and session time limits. These features allow bettors to control how much money and time they spend on sports betting, promoting responsible betting habits and reducing the risk of problem gambling.

Access to Support and Counseling

For Tennesseans struggling with gambling problems, several support services are available:

  • National Problem Gambling Helpline: Call 1-800-GAMBLER for free, confidential help 24/7. This helpline connects callers to local treatment resources throughout Tennessee.
  • Tennessee REDLINE: A 24-hour helpline (1-800-889-9789) offering support and referrals specifically for problem gambling within the state.
  • Tennessee Institute for Gambling Education & Research (TIGER): Provides counseling and educational programs aimed at preventing and treating gambling addiction.
  • Mental Health America of the MidSouth: Offers resources and referrals for individuals affected by gambling issues.

Educational Resources

Licensed Tennessee sportsbooks also provide educational materials to help bettors understand the risks associated with gambling and recognize the warning signs of gambling addiction. These resources encourage safe betting practices and promote awareness among new and experienced bettors alike.

Responsible Gambling Commitment

All licensed operators in Tennessee adhere to strict responsible gambling policies mandated by the SWC. These include mandatory age verification (minimum legal betting age of 21), monitoring for suspicious betting activity, and offering easy access to responsible gambling tools within their apps.

Tennessee Online Gambling: Future Outlook for 2026 and Beyond

Tennessee's regulated gambling market is likely to remain static for the foreseeable future. The state's conservative legislature has shown no interest in expanding legal gambling beyond the existing sports wagering and DFS options, and the absence of a land-based casino industry means there is no organized lobbying force pushing for iGaming legalization. Here is where each product category stands heading into the remainder of 2026.

The Future of Tennessee Gambling: Our Predictions

Product LineOutlookPrediction
Sports BettingStableMature market. The 1.85% handle tax has pushed out smaller operators who could not sustain the margins (e.g., WynnBet exited). Expect continued consolidation, leaving only the top 6–8 licensed apps.
Daily FantasyNeutralSettled. The shift to peer-to-peer formats is permanent. House Pick'em will not return unless the SWC's rules are overturned by a court order, an unlikely outcome.
Prediction MarketsPessimisticLegal battles ongoing. The SWC is among the most aggressive state regulators opposing prediction markets. Expect continued friction and potential geoblocking of Kalshi and Robinhood, among others.
Online CasinoVery PessimisticNon-starter. Without physical casinos to anchor a lobbying effort, there is no realistic path to licensed iGaming in Tennessee within the next decade.

What's Legal in Tennessee: Complete Online Gambling Status Overview

ProductLegal StatusTop Choice
Mobile Sports Betting✅ Legal (Statewide)FanDuel
Retail Sports Betting❌ IllegalN/A
Prediction Markets⚠️ Hostile / RestrictedKalshi (DraftKings Blocked)
Sweepstakes Casinos✅ Legal (Statewide)Stake.us
Daily Fantasy Sports✅ Legal (Peer-to-Peer Only)PrizePicks Arena
Online Poker❌ IllegalGlobal Poker (Sweeps)
Online Slots❌ IllegalWoW Vegas (Sweeps)

Tennessee Sports Betting and Online Gambling in 2026

Tennessee has built one of the most distinctive legal gambling frameworks in the United States. It’s  a fully digital, online-only sports betting market with no physical sportsbooks, no commercial casinos, and no tribal gaming operations. The Tennessee Sports Gaming Act of 2019 created a genuinely novel regulatory model, and the state's 1.85% handle tax remains one of the most unusual taxation structures in the country. For Tennessee residents, the practical reality is clear: legal sports wagering is available, accessible, and well-regulated, but only through licensed online platforms.

Beyond sports betting, Tennessee bettors have access to a robust ecosystem of alternatives. Licensed daily fantasy sports platforms, operating in peer-to-peer formats as mandated by the SWC, serve players who prefer skill-based competition. Sweepstakes casinos fill the gap left by the absence of legal iGaming, offering slots, table games, and poker under a promotional model that is fully compliant with state law. Prediction markets remain a contested gray area, with the SWC actively fighting to restrict their operation in the state.

Tennessee Online Gambling and Sports Betting FAQs

What is the minimum age to bet on sports in Tennessee?

Yes, sports betting is legal in Tennessee. The Tennessee Sports Gaming Act, passed in 2019, legalized online sports wagering statewide. All legal betting in Tennessee is conducted through licensed mobile apps and websites.

Is sports betting legal in Tennessee?

Yes, sports betting is legal in Tennessee. The Tennessee Sports Gaming Act, passed in 2019, legalized online sports wagering on a statewide basis. All legal betting in Tennessee is conducted through licensed mobile apps, there are no physical sportsbooks or retail betting locations anywhere in the state.

Can I bet on sports at a physical location in Tennessee?

No. Tennessee law explicitly prohibits retail sports betting. There are no physical sportsbooks, betting kiosks, or casino-based wagering facilities in the state. All legal sports wagers must be placed through a licensed online platform or mobile app.

How does Tennessee's sports betting tax work?

Tennessee taxes licensed sports betting operators at 1.85% of their total handle, meaning the total amount wagered, not the operator's profit. This handle-based tax replaced an earlier 20% revenue tax in 2023 and is designed to generate predictable state revenue regardless of how much operators win or lose in a given period. It is one of the most unusual taxation models in U.S. sports betting regulation.

Which sportsbook apps are legally licensed in Tennessee?

As of 2026, Tennessee has 12 licensed mobile sportsbook operators, including FanDuel, DraftKings, BetMGM, Caesars Sportsbook, bet365, Fanatics Sportsbook, Action 24/7, Hard Rock Bet, Bally Bet, Betly, theScore Bet, and VIP Play. All of these platforms are regulated by the SWC.

Are online casinos legal in Tennessee?

No. Online casino gaming, including licensed online slots, blackjack, roulette, and poker, is illegal in Tennessee. There are no land-based commercial casinos in the state, and legislation to legalize iGaming has never gained traction in the Tennessee General Assembly. Sweepstakes casinos are the only legal alternative for casino-style gaming in Tennessee.

James Guill

James Guill
Writer

James Guill is an experienced iGaming journalist with a diverse background spanning IT, poker, and online gambling media. With over 20 years in the industry, he’s covered a wide range of gaming topics and has been featured in outlets like USA Today and G4 TV.

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