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Sports betting is legal in Tennessee, but it works differently than in most states. Tennessee runs an online-only sports betting system, which means you can place bets only through approved apps and websites. There are no physical sportsbooks or casino betting counters anywhere in the state. Everything happens digitally, and every operator is tightly monitored to ensure fair play and safety.
How Sports Betting Became Legal in Tennessee
Tennessee legalized sports betting in 2019 through the Sports Gaming Act, and the market officially launched in November 2020. The key rule is simple:
- You must be 21 or older.
- You must physically be in Tennessee when placing a bet.
Location is confirmed using geolocation technology, so bets placed from outside the state won’t go through.
In 2022, the Tennessee Sports Wagering Council (SWC) became the main regulator. The council is responsible for licensing apps, enforcing rules, and promoting responsible gambling.
Tennessee Has an Online-Only System
Unlike most states, Tennessee does not allow in-person sportsbooks. There are no betting windows in stadiums or casinos. All betting takes place on mobile devices and computers.
This model gives the state better control, ensuring that:
- Operators follow the law
- Betting activity is transparent
- Player protections are enforced
Rules and Consumer Safety
Tennessee operators must follow some of the strictest rules in the country:
| Requirement | Description |
| Annual License Fee | $750,000 per sportsbook |
| Tax Structure | 1.85% on total betting handle (not revenue) |
| Minimum Hold Requirement | Sportsbooks must keep at least 10% of all wagers placed |
| Payment Restrictions | Credit cards cannot be used to deposit funds |
The ban on credit card deposits is meant to reduce risk of debt. Players can instead use:
- Debit cards
- Bank transfers
- E-wallets
All legal apps must offer responsible gaming tools, such as:
- Deposit limits
- Time limits
- Self-exclusion programs
Legal Sportsbooks Operating in Tennessee
As of 2025, 12 licensed sportsbooks operate legally in the state, including:
- FanDuel
- DraftKings
- BetMGM
- Caesars
- bet365
These platforms are monitored for fair play, secure payments, and customer safety.
Important: Offshore betting sites like MyBookie or BetUS are not legal in Tennessee. They may not guarantee winnings, and players risk losing money with no protection.
Market Growth and Oversight
Tennessee now has the largest online-only sports betting market in the United States, with yearly bets totaling over $5 billion. The SWC actively monitors the industry, issuing fines and bans to operators that break rules.
The state works with:
- Law enforcement
- Sports leagues
- Financial agencies
This ensures betting remains safe, transparent, and fair.
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