Online sports betting is fully legal in Tennessee, and the Volunteer State operates one of the largest online-only sports betting markets in the United States. Since launching on November 1, 2020, Tennessee has attracted 11 licensed operators and generated billions of dollars in wagering handle. There are no retail sportsbooks and no physical betting locations — all legal wagering takes place through licensed mobile apps and websites. With big names like FanDuel, DraftKings, BetMGM, Caesars, and bet365 all competing for bettors, Tennessee offers one of the most competitive online sports betting environments in the country.
Quick Facts: Sports Betting in Tennessee
| Status | Legal — online/mobile only |
|---|---|
| Launch Date | November 1, 2020 |
| Retail Sportsbooks | None permitted by law |
| Active Licensed Operators | 11 (FanDuel, DraftKings, BetMGM, Caesars, bet365, Fanatics, Hard Rock Bet, Bally Bet, theScore Bet, VIP Play, ZenSports) |
| Regulatory Body | Tennessee Sports Wagering Council (SWC) — renamed from the Sports Wagering Advisory Council (SWAC) in 2023 |
| Tax Structure | 1.85% tax on total handle (changed from 20% GGR in July 2023) |
| Licensing Fee | Tiered: $750,000 annually for operators with $100M+ in trailing 12-month gross wagers, $375,000 for operators below that threshold (plus a $50,000 nonrefundable application fee) |
| Mandatory Hold Requirement | None — the original 10% mandatory hold rule was repealed in 2023 alongside the shift to a handle-based tax |
| State Income Tax | None — Tennessee has no state income tax on wages or gambling winnings |
| Minimum Betting Age | 21 |
Top Sportsbooks in Tennessee
Online Sportsbooks Available in Tennessee
Tennessee operates an open licensing model with no hard cap on the number of operators that can receive a license, making it one of the most competitive online betting markets in the country. Two operators — Betly and Action 24/7 — exited the market in late 2025/early 2026 (see history below), while VIP Play joined the field in 2025. The following 11 platforms are currently licensed and accepting bets in Tennessee:
- FanDuel Sportsbook — launched November 1, 2020; consistently among the top operators by handle; partner of the Memphis Grizzlies
- DraftKings Sportsbook — launched November 1, 2020; one of the largest nationally; strong props and same-game parlays
- BetMGM Sportsbook — launched November 1, 2020; partner of the Tennessee Titans and Nashville Predators
- Caesars Sportsbook — launched March 11, 2021; partner of the Memphis Grizzlies; competitive odds boosts
- bet365 Sportsbook — launched March 16, 2025; global powerhouse offering in-game wagering and extensive market depth
- Fanatics Sportsbook — launched August 9, 2023; growing national footprint with loyalty rewards integration
- Hard Rock Bet — launched September 6, 2022; backed by Hard Rock International
- Bally Bet Sports & Casino — launched October 17, 2024
- ZenSports — launched June 8, 2023; peer-to-peer wagering model, Tennessee exclusive
- theScore Bet — launched December 1, 2025; replaced ESPN Bet in Tennessee
- VIP Play — launched May 12, 2025; mobile-first sportsbook offering wagering across 200+ leagues
History of Sports Betting in Tennessee
| Date | Event |
|---|---|
| July 1, 2019 | HB 0001, the Sports Gaming Act of Tennessee, becomes law without Governor Bill Lee’s signature, making Tennessee the first state to legalize online-only sports betting without also permitting retail sportsbooks. |
| April 15, 2020 | The Tennessee Education Lottery Corporation approves the state’s final sports betting rules, lowering the controversial mandatory hold from a proposed 15% to 10% following stakeholder feedback. |
| November 1, 2020 | Tennessee sports betting officially launches. BetMGM, DraftKings, FanDuel, and Tennessee Action 24/7 all begin accepting wagers on opening day — just in time for Week 8 NFL action. |
| March 11, 2021 | Caesars Sportsbook enters the Tennessee market, becoming the fifth licensed operator in the state. |
| January 1, 2022 | Regulatory oversight transitions from the Tennessee Education Lottery Corporation to the newly formed Sports Wagering Advisory Council (SWAC). |
| August 16, 2022 | Betly Sportsbook launches in Tennessee, adding another homegrown regional operator to the growing competitive landscape. |
| June 8, 2023 | ZenSports launches in Tennessee after a lengthy delay, becoming the state’s first peer-to-peer sports betting platform to go live. |
| July 2023 | Tennessee switches its tax model from 20% of gross gaming revenue to a 1.85% flat tax on gross handle, repeals the mandatory 10% hold rule, drops the official league data requirement, and renames its regulator from the Sports Wagering Advisory Council (SWAC) to the Sports Wagering Council (SWC) — making it the only state in the U.S. to tax betting handle rather than operator revenue. |
| August 9, 2023 | Fanatics Sportsbook launches in Tennessee as the brand expands its national footprint. |
| March 16, 2025 | bet365 Sportsbook officially launches in Tennessee, bringing one of the world’s most recognized betting brands to the Volunteer State just ahead of March Madness. |
| May 12, 2025 | VIP Play launches its mobile sports betting app in Tennessee, offering wagering across more than 200 leagues. |
| June 30, 2025 | New SWC rules take effect, strengthening multi-factor authentication requirements, responsible gaming definitions, and marketing oversight regulations. |
| December 1, 2025 | theScore Bet enters Tennessee, replacing ESPN Bet which had exited the market. |
| December 29, 2025 | Betly Sportsbook exits the Tennessee market; existing customers had until January 11, 2026 to withdraw remaining funds. |
| January 22, 2026 | Action 24/7, Tennessee’s only locally owned sportsbook, ceases operations, citing financial unsustainability under the state’s handle-based tax model. |
Sports Betting Laws and Regulations in Tennessee
Tennessee’s Sports Gaming Act, which became law in July 2019, established an online-only betting framework that is unique in the United States. There are no retail sportsbooks permitted anywhere in the state — all legal wagering must occur through licensed digital platforms. The Sports Wagering Council (SWC) — renamed from the Sports Wagering Advisory Council (SWAC) in 2023 — serves as the primary regulator, handling licensing, compliance, investigation, and enforcement.
Key provisions of Tennessee’s sports betting law include:
- No mandatory hold requirement: Tennessee originally required licensed operators to retain at least 10% of all wagers placed on an annual basis — the only such requirement in any U.S. jurisdiction — but lawmakers repealed this rule in 2023 alongside the shift to a handle-based tax.
- No credit card deposits: Tennessee bettors cannot fund their accounts using credit cards. This is a state-level banking prohibition.
- College prop bets restricted: Bettors cannot place in-game or live proposition wagers on college sporting events. Pre-game college betting is permitted.
- Official data requirement dropped: Tennessee previously required operators to use official league data for in-play wagers, but this mandate was eliminated in 2023.
- Tiered annual licensing fee: $750,000 per year for operators with $100M+ in trailing 12-month gross wagers, or $375,000 for operators below that threshold, plus a $50,000 nonrefundable application fee, with proceeds directed toward education funding.
- Offshore enforcement: In July 2025, the SWC fined five offshore sportsbooks $50,000 each for illegally operating in the state, signaling increased enforcement activity.
In June 2025, the SWC enacted updated rules that added multi-factor authentication for account activities, stronger Know Your Customer (KYC) standards, new responsible gaming definitions, and clearer rules around voiding and canceling wagers.
Taxes on Sports Betting Winnings in Tennessee
Tennessee is the only state in the country that taxes sports betting based on gross handle (the total dollar amount of all bets placed) rather than operator revenue. Since July 2023, licensed sportsbooks pay a 1.85% tax on all gross wagers accepted, regardless of whether the operator turned a profit on those bets in a given month. This model provides the state with more predictable tax revenue but can penalize operators during low-margin periods.
In April 2025, the handle-based tax generated $8.6 million in state revenue from $463.6 million wagered. For the full year 2024, Tennessee collected approximately $59 million in sports betting tax revenue.
For individual bettors, Tennessee is one of the most favorable states in the country. Tennessee has no state income tax on wages or gambling winnings, meaning bettors keep 100% of their winnings at the state level. Federal tax obligations still apply — gambling winnings are taxable income under federal law, and significant winnings may trigger a W-2G form from the sportsbook. Bettors should track net wins and losses and consult a tax professional for guidance on federal reporting requirements.
Latest News on Sports Betting in Tennessee
| Date | Story |
|---|---|
| January 22, 2026 | Action 24/7 ceases operations in Tennessee, citing financial unsustainability under the state’s handle-based tax model — the operator was the state’s only locally owned sportsbook. |
| December 29, 2025 | Betly Sportsbook exits the Tennessee market, trimming the state’s licensed operator field. |
| December 1, 2025 | theScore Bet launches in Tennessee, filling the void left by ESPN Bet’s departure from the market. |
| June 30, 2025 | New SWC regulations take effect, adding MFA requirements, updated KYC standards, and stronger responsible gaming definitions across all licensed operators. |
| July 2025 | The Sports Wagering Council fines five offshore sportsbooks — including BetUS, BetOnline, and MyBookie — $50,000 each for illegally operating in Tennessee without a license. |
| May 2025 | Tennessee’s sports betting handle rises 21.7% year-over-year in April, reaching $463.6 million — evidence of a maturing and growing market. |
| May 12, 2025 | VIP Play launches its mobile sportsbook app in Tennessee, expanding the state’s operator field to 12 (before the later Betly and Action 24/7 exits). |
| March 16, 2025 | bet365 Sportsbook officially launches in Tennessee, adding one of the world’s largest international betting brands to the state’s competitive online market. |
| October 2024 | Bally Bet Sports & Casino launches in Tennessee, expanding the roster of licensed operators to more than a dozen platforms. |
| September 2025 | Tennessee records $565.3 million in sports betting handle for the month — the third-highest total since the market launched in November 2020. |
FAQs About Sports Betting in Tennessee
Is sports betting legal in Tennessee?
Yes. Online sports betting is fully legal in Tennessee and has been since November 1, 2020. All legal wagering is conducted through licensed mobile apps and websites; there are no retail sportsbooks in the state.
Which sportsbooks are available in Tennessee?
Tennessee has 11 licensed operators: FanDuel, DraftKings, BetMGM, Caesars, bet365, Fanatics, Hard Rock Bet, Bally Bet, ZenSports, theScore Bet, and VIP Play. Two former operators, Betly and Action 24/7, exited the market in late 2025 and early 2026, respectively.
Can I bet on college sports in Tennessee?
Yes, but with restrictions. Pre-game wagering on college sports is permitted. However, live or in-game proposition bets on college sporting events are prohibited under Tennessee law.
What is the mandatory hold requirement in Tennessee?
There is no longer one. Tennessee originally required sportsbooks to maintain a minimum hold of 10% of wagers annually — the only such requirement in any U.S. state — but lawmakers repealed the rule in 2023 as part of the shift to a 1.85% tax on gross betting handle.
How is sports betting taxed in Tennessee?
Operators pay a 1.85% tax on gross betting handle. Tennessee is the only state that taxes handle rather than gross gaming revenue. For individual bettors, Tennessee has no state income tax, so winnings are not taxed at the state level. Federal taxes still apply.
Are there retail sportsbooks in Tennessee?
No. Tennessee is an online-only market. There are no casinos, racetracks, or brick-and-mortar sportsbook locations in the state. All legal sports betting must occur through a licensed app or website.
What is the minimum age to bet on sports in Tennessee?
You must be 21 years of age or older to legally place a sports wager with any licensed Tennessee sportsbook.
How big is the Tennessee sports betting market?
Tennessee is one of the largest online-only sports betting markets in the United States. The state has recorded more than $4.7 billion wagered in a single fiscal year and consistently ranks in the top ten nationally for total handle despite having no retail component.
What happened to Betly and Action 24/7 in Tennessee?
Both operators exited the Tennessee market within a few weeks of each other. Betly Sportsbook stopped accepting wagers on December 29, 2025, giving customers until January 11, 2026 to withdraw funds. Action 24/7 — the state’s only locally owned sportsbook — shut down on January 22, 2026, citing financial unsustainability under Tennessee’s 1.85% handle-based tax. Bettors with legacy accounts at either operator should confirm any remaining balances were withdrawn before the respective deadlines.
Responsible Gambling in Tennessee
The Tennessee Sports Wagering Council is committed to promoting responsible gambling practices across all licensed platforms. Tennessee law requires operators to offer self-exclusion tools, deposit limits, and account cool-off periods. Resources for bettors include:
- National Problem Gambling Helpline: 1-800-522-4700 (call or text, 24/7)
- Tennessee REDLINE: 1-800-889-9789 — the state’s substance abuse and problem gambling referral line
- Self-Exclusion: All licensed Tennessee sportsbooks must participate in the statewide self-exclusion program managed by the SWC
- Gamblers Anonymous: Visit gamblersanonymous.org for local chapter meetings throughout Tennessee
Bet responsibly. Use the deposit, time, and session limit tools available on every licensed platform. If gambling stops being fun, seek help immediately.
