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Sports betting in Tennessee

Legal sports betting in Tennessee came to fruition in June 2019. It took a while for the state to finalize some issues in terms of the official rules and regulations of Tennessee online sports betting, as it did not launch until November 2020. There are now nine online sportsbooks in the Volunteer State, with four more recently granted licenses, and you can only bet online or through mobile apps, as there are no retail sportsbooks since there are no land-based casinos in the state. 

In this complete Tennessee online sports betting guide we will give you all the important information about wagering in the state. On top of that we will show you the quick and easy process to set up an account at a licensed TN online sportsbook. Some of the info we will present to you are tax and legal issues, what you can bet on, betting restrictions, a timeline of events, all the available sportsbooks, and we will also answer some frequently asked questions. Continue reading to get up to date on legal sports betting in Tennessee. 

All legal sports betting options in Tennessee

The legal situation on Tennessee sports betting

One thing that is unique about Tennessee sports betting is the bill that legalized it was not signed by the governor. Bill HB001 went through the state legislature in June 2019 but because of the law in Tennessee the bill was allowed to pass without the signature of Gov Bill Lee. The state dragged its feet for a while, as there was debate about taxes and regulations and that is why it took about 16 months for legal online sports betting to launch in November of 2020. 

The state was successful in launching online sports betting before the football seasons and bettors that love the Tennessee Titans and Tennessee Volunteers had to be happy about that. As of May 2022 there are nine online sportsbooks available in the Volunteer State. The state is the only one that has a mandatory hold (10%) on wagers taken in. That means that the sportsbooks in the state bookies can only pay out 90% of the funds wagered annually. 

Tennessee has a rather high tax on revenues from online sportsbooks at 20%. On top of that the licensees must pay $750,000 each year for their online sports betting license. Since launching online sports betting has raked in over $58 million in taxes. 

šŸ›‘ What you canā€™t bet on from online sportsbooks in Tennessee

Tennessee is one of the states where you can bet on in-state college teams. The Volunteer State has some major college sports programs such as the University of Tennessee, University of Memphis, and Vanderbilt. However, while you can bet on college teams in the state you cannot make any type of college proposition bet.

Here are the restrictions on what you cannot bet on in the Volunteer State:

  • Entertainment bets such as for the Emmys and Oscars 
  • Political bets such as the U.S. presidential election 
  • Collegiate proposition bets 

šŸŸ¢ What you can bet on from online sportsbooks in Tennessee

  • NCAA Football, NCAA Basketball, NCAA Baseball 
  • Major Domestic Leagues, including NFL, NBA, NHL, MLS, MLB, MMA, UFC, etc. 
  • Major International Leagues, including England Premier League, Italy Serie A, Spain La Liga, etc. 
  • Major sports events, including NBA playoffs and finals, Stanley Cup, Super Bowl, World Series, World Cup, The Masters, Olympics, etc.
  • Most betting types, including spreads, moneylines, totals (over/under), parlays, futures, proposition bets (pro sports no college props), and live bets. 
  • eSports 

What is the tax situation in Tennessee

Tennessee has a rather high sports betting tax of 20% on gross revenue. The licensing fees of $750,000 annually are also rather high. However, the online books saw the future for the state in terms of online sports betting and there are nine sportsbooks available in the state. Since the launch of online sports betting the state has taken in over $58 million in taxes. According to Tennessee law the allocation of sports betting tax funds are as follows:

  • 80% will go to the state treasurer where the funds will be deposited into the Lottery for Education Account. 
  • 15% will go to the state treasurer where the funds will be deposited into the General Fund. Then quarterly the funds will be given to local governments throughout the state and the money allocated will depend on per capita. 
  • 5% will go to the Department of Mental Health and Substance Abuse Services for grants to aid with services for problem gambling. 

In 2022 the Sports Wagering Council took over for the Tennessee Education Lottery as the body that oversees all sports betting activities in the state. 

All the available sportsbooks in Tennessee

  • Action 24/7 Sportsbook
  • Barstool Sportsbook
  • BetMGM Sportsbook
  • Caesars Sportsbook
  • DraftKings Sportsbook
  • FanDuel Sportsbook
  • TwinSpires Sportsbook
  • Wagr Sportsbook
  • WynnBET Sportsbook

Forecasts about the future of online gambling in TennesseeĀ Ā Ā Ā 

The future is very bright for online sports betting in Tennessee. There are currently nine online sportsbooks in the state and they are the only place to wager on sports, as there are no retail sportsbooks. 

There are more bookies that are looking to enter the Volunteer State even though taxes on sports betting are on the high side at 20% and license fees are also on the high side to the tune of $750,000 per year. This is a reality, as the sportsbooks that are looking into a Tennessee sports betting license see the room for growth, as since launching a little over $4.1 billion in sports bets have been made. There are four other sportsbooks that have been granted licenses in Fubo, SuperBook, Betly, and Bally Bet, but as of May 2022 none has launched. 

One of the main concerns is that with the mandatory 10% hold on wagers taken in, the sportsbooks will increase their vig. The vig is the money made by the book on every bet and they get this by increasing odds, which would limit the profit on a winning bet since you have to pay more to the books. That has not happened yet with the sportsbooks making a profit but it is still a concern nonetheless. 

Timeline of main events in Tennessee

  • March 2022 – SuperBook, Bally Bet, Betly granted sports betting license 
  • February 2022 – Fubo becomes the 10th sportsbook to be granted a license 
  • January 2022 –  Sports Wagering Council takes over for the Tennessee Education Lottery to oversee sports betting in Tennessee 
  • March 2021 – Action 24/7 Sportsbook suspends operation,as they are accused of money laundering. An injunction by a federal judge allows the book to go back online 
  • November 2020 – Online sports betting launches 
  • November 2020 – The first four sportsbooks to take bets at launch time are DraftKings, FanDuel, BetMGM, and Tennessee Action 24/7 
  • June 2019 – Online sports betting legalized 
  • May 2018 – The Supreme Court overturns Professional and Amateur Sports Protection Act (PASPA), which made sports betting legal on a state-by-state basis. 
  • July 2016 – Daily Fantasy Sports legalized 

How do I start betting online in TennesseeĀ Ā 

Getting started to bet on sports online in Tennessee is a quick and easy process. The first thing to do is choose between one of the legal sportsbooks in the state. You must be at least 21 years of age to register for a TN sportsbook account. After registration the sportsbook will then have to do an identity verification process to make sure you are who you say you are. To do this you will have to give the book information such as: 

  • Full name
  • BirthdayĀ 
  • Social Security NumberĀ 
  • Personal verification informationĀ 

Once your ID verification is complete you will receive a confirmation email from the sportsbook. Then you can get going and start to bet online on your favorite sports.

FAQs

Who regulates the legal online sports betting in Tennessee?

In January 2022, the Sports Wagering Council took over for the Tennessee Education Lottery to oversee sports betting in the state.

Are the odds the same while betting inĀ  Tennessee as in any other state?

Yes. If the brand is the same, such as DraftKings Tennessee and DraftKings Michigan the odds will be exactly the same. If it is a different brand such as FanDuel and DraftKings TN they may not be exactly the same but they will be very similar.

What are the differences between sports betting inĀ  Tennessee compared to any other state?

One difference is that in Tennessee you can bet on in-state college teams but you can not make any collegiate proposition bets. Another difference is that like many other states there are no retail sportsbooks since there are no land-based casinos in the Volunteer State. Tennessee is also the only state that has a mandatory hold, which is 10%, on all bets made.

Is sports betting legal in Tennessee?

Yes. Sports betting became legal in June 2019 when bill HB001 passed. Online sports betting went live in the state in November 2020.

How old do you need to be for online sports betting in Tennessee?

You must be 21 years old to gamble on sports in Tennessee.

Where can you bet online in Tennessee?

If you are at least 21 years old you can legally bet at any of the state-licensed sportsbooks. As of May 2022 there are nine sportsbooks available in Tennessee with four more that have already procured a license.

Do I need to be a resident of Tennessee to bet at Tennessee sportsbooks?

No. You do not need to be a resident of Tennessee to play at Tennessee online sportsbooks. However, you must be physically located in the state in order to make bets.

Can I access my Tennessee sportsbook account in other states?

Yes. You can access your Tennessee online sportsbook account but you canā€™t bet unless you are in state lines. However, you can do other things outside of TN such as make deposits and withdrawals, check out the odds, and contact customer service.