Tennessee is a landlocked state in the Southeastern USA, which is best known for being the home of country music and for the high number of volunteers it provided during the War of 1812. One thing it is not known for, however, is its gambling scene, as gambling in Tennessee is practically nonexistent.
Gambling Laws in Tennessee
According to Tennessee’s Code § 39-17-501, “Gambling is contrary to the public policy of this state and means risking anything of value for a profit whose return is to any degree continent on chance”. As one can imagine, that description leaves very little up for interpretation and, indeed, Tennesseans and visitors to the Volunteer State will not come across any racetracks, bingo games (even for charitable purposes), and land-based casinos – not even on Tribe Lands (Case Text, 2021).
But, among this bleak gambling landscape, there is some light. In 2002, a constitutional amendment that would allow Tennessee to have its own State Lottery was voted in. Then, in 2019, the Volunteer State shocked everyone by becoming the first state to approve online-only betting, giving players in the state the opportunity to bet on online sports, horse racing, and take part in ‘daily fantasy sports’ (Tennessee Secretary of State, 2019).
Is Online Gambling Legal In Tennessee?
The 2019 change in law, however, did not make online casinos legal. In fact, it is still illegal for Tennesseans to play any form of online casino game. This is the case even if the casino is licensed in another state or by a foreign jurisdiction given that the player is within the borders of the Volunteer State. This, sadly, includes online poker, blackjack, roulette, video slots, baccarat, and all other games of chance.
As can be imagined, this total ban on Tennessee online casinos has been daunting for players in the state, who would like to play their favorite casino games. And as usually happens, players have managed to find some ways around this. One of these ways is by driving out of the state (usually to Illinois) to play at land-based casinos; while another is to use sweepstakes sites.
Legitimate sweepstakes sites, give you the chance to play online casino games where you can win coins that can be exchanged for prizes. These are legal within Tennessee, though it’s important to note that you should not be required to make a purchase, you will need to pay tax on your winnings, and that winners in Tennessee are not required to sign away publicity rights in perpetuity.
Sportsbooks Are Legal
As of November 1, 2020, online sportsbooks, betting on horse racing, and Daily Fantasy Sports have become legal in the Volunteer State. There are currently seven sportsbooks that cater to Tennesseeans, namely BetMGM, FanDuel, DraftKings, WynnBET, Caesars Sportsbook, TwinsSpires, and Tennessee Action 24/7.
Although each sportsbook offers different services, you can join any of these to bet on baseball, basketball, tennis, golf, soccer (including European soccer), motorsports, and horse racing legally.
Daily Fantasy Sports, where you get to create whole teams and earn points based on the individual’s performance, has also been made legal in the state.
Conclusion
While Tennessee has some of the strictest laws related to gambling, it does seem to be opening up to the idea of allowing its citizens to gamble. In fact, while it’s hard to know what the future will hold for Tennessee’s gambling scene, the state may well end up surprising us like it did in 2019. We’ll obviously keep an eye out on anything related to Tennessee’s gambling laws and update this page regularly!
Tennessee Online Gambling FAQ
Is online gambling in Tennessee Legal?
Practically all forms of gambling are illegal in Tennessee. The only exceptions are the State Lottery, online sports, horse racing, and DFS.
Do I need to pay taxes on my gambling winnings in Tennessee?
Yes, there is a 25% tax on winnings from the State Lottery or from any games legally provided by online sportsbooks. This, however, can go up to 28% if you do not supply your social security number (SSN) to the sportsbook.
Why do I need to give sportsbooks my social security number in Tennessee?
When you join a sportsbook, you will be given the option of submitting your SSN. While this may seem strange, this is used by the sportsbook to report their business to the Internal Revenue Service (IRS).
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