Is Gambling Legal in Tennessee? Understanding the Legal Status of Gambling
Grow Organic Traffic
Is Gambling Legal in Tennessee?
Tennessee allows online sports betting, state lottery, and charitable gaming like raffle and bingo. However, the state prohibits casino gaming, including brick-and-mortar and online casinos.
Understanding iGaming and online gambling laws vary state-to-state. Indeed, there’s potential for more legalizations in Tennessee. With sports wagering recently allowed, we might see legal online social casinos.
Overview of Gambling Legislation in Tennessee
As was the case in the whole country, Tennessee initially took a conservative stance against gambling. Of course, Tennessee residents engaged in underground casino gambling and sports betting. But it was in 1987 when state lawmakers started easing up on the restrictions.
Here’s a quick timeline of significant events in Tennessee’s gambling law landscape:
- 1987: Tennessee legalizes horse racing through the Racing Control Act. The Racing Control Act allowed residents to wager on horse racing through a pari-mutuel wagering setup.
- 1994: The Tennessee Education Lottery Corporation (TEL) launches the Tennessee Lottery. Lottery tickets were distributed, with proceeds going to educational programs.
- 2019: Tennessee legalizes online sports betting in the state. This groundbreaking opened doors for major sportsbooks and offshore operators.
Let’s dig deeper into Tennessee’s gambling activities below.
Casino Gambling in Tennessee
Casino gambling is prohibited in Tennessee, whether land-based or online casinos. Tourists and residents don’t have access to legal casino games within the state borders of Tennessee.
This state does not allow online casinos, slots, roulette, and poker. Moreover, there’s not much traction for legalizing social casinos in Tennessee. There were efforts to restart discussions in 2021, but resort and social casinos are still not permitted.
That said, casino businesses might have to wait before becoming licensed operators in Tennessee.
State Lottery and Its Legality
Lottery games in Tennessee are legal through the operation of the Tennesee Education Lottery Corporation (TEL). The TEL allows bettors to bet on bingo and other charitable games like these:
- Draw games like Powerball and Mega Millions
- Scratch-off tickets
- Bingo and other forms of lottery
The money that the TEL profits from the lottery is given to charitable programs. Examples of such initiatives are the Tennessee Hope Scholarship and after-school programs.
Sports Betting in Tennessee
The sportsbook business is now allowed to operate in Tennessee. In 2019, the Sports Gaming Act legalized sports betting in Tennesee. The following year, the first sportsbook was finally launched.
Moreover, it’s safe to say that sports betting brings money and cash to the state. Since 2019, the Tennessee sports betting industry has generated a total revenue of $236 million.
Still, the state enforces strict rules on signing up for a sportsbook account. Here are the key considerations:
- Only online sportsbooks are allowed to operate within state lines.
- Bettors must be at least 21 to open an account and bet money.
- Sportsbooks are mandated to comply with tax policies and profitability measures.
Among the approved sportsbooks in Tennessee include DraftKings, BetMGM, and many others.
Online Gambling and Its Legal Implications
Except for online sports betting, any form of online gambling is prohibited in Tennessee. That includes social casinos, live dealer games, slots, and poker. Promotions of casinos and related games are also not allowed.
The lack of online casino games could be traced to Tennessee’s stance on consumer protection. As for online sports betting, here are key aspects that help regulate the games:
- Any form of sports betting operation should have a license from the TEL.
- Operators should ensure fairness and transparency in the games.
- Sportsbooks must promote responsible gaming, including options to self-exclude.
- Businesses should secure data-related information, especially financial information.
Furthermore, anti-money laundering measures should be in place. Businesses must detect accounts associated with laundering money and funds.
Charitable Gaming Regulations
Tennessee allows residents to play charitable games like bingo and raffle. However, these games must comply with the policies below:
- Charitable games should abide by the law stipulations in Chapter 17 of the Tennessee Code Title 3.
- Businesses operating charitable games should get a non-profit license. This license is issued at the Tennessee Secretary of State office.
- Charities can only host these games after three years of continuous operation. This ensures the authenticity of the organization’s non-profit goals.
The law also limits the prizes and cash that come with these games. Moreover, residents must be physically present and at least 18 years old to play.
Illegal Gambling Activities and Consequences
In Tennesee, people are prohibited from playing in social casinos and offshore games. The law could mandate violators to pay fines or even face imprisonment. Here’s a list of prohibited games and wagers in the Volunteer State:
- Social casinos, including slots, roulette, blackjack, craps, and baccarat
- Online games and casinos, with the exception of sports betting
- Unlicensed or offshore casino games and sports wagering
- Using a mobile device to create free or paid accounts on unlicensed platforms
- Promotions of prohibited casino games, land-based casinos, and other betting platforms
Violators of these policies could lead to legal repercussions. These repercussions include misdemeanors, felonies, asset seizures, and civil penalties. As mentioned before, the state can also mandate violators to pay fines when they play in casinos.
Recent Changes and Future of Gambling Legislation in Tennessee
When Governor Bill Lee approved the sports betting act, more discussions were opened for legalization. Suddenly, the potential of casinos and online games became brighter.
However, not many movements came after the Sports Gaming Act. Until now, online casino games and land-based casinos have not been allowed.
The only legislation signed into law was the Senate Bill 475. Tennessee became the first state to impose a tax on sports betting handles instead of the gross revenue. It’s a unique tax structure that could impact not just East or West Memphis but neighboring states as well.
Comparing Tennessee Gambling Laws to Other States
Tennessee remains limited in the gaming it allows. People can’t still play casinos and online games here. It’s different from other states, as you can see below:
- Nevada: Nevada is one of the states where sports betting is also legal. The state also allows land-based casinos and online casino games like poker.
- New Jersey: Online casinos and sports betting are legal in New Jersey. The state actually generates millions and billions of money and funds through casino activities.
Each state has limited activities and legal constraints. Aspiring operators must work with gambling marketing experts to navigate these casino and gaming laws.
For example, marketing agencies like us provide iGaming and sportsbook assistance. They can help you promote your gambling business without violating any policies.
Conclusion: Navigating Gambling Laws in Tennessee
For now, Tennessee is a limited state in terms of gambling activities they allow. These activities are limited to sports wagering, lottery, and charitable games. Tennessee lawmakers have yet to allow casinos and other online casino activities.
With strict policies, operating a gaming business in Tennessee could be challenging. It’s essential to stay informed of bill legalizations and changes. This is your ticket to navigating gambling laws without incurring legal repercussions.
FAQs
Are social gambling games legal in Tennessee?
If there is no money involved, playing social gambling games could be allowed in Tennessee. These activities should be solely for fun and entertainment, without participants having to pay for a fee or a bet.
Can tourists gamble legally in Tennessee?
Yes, tourists can legally participate in lottery games, place online sports bets, and wager on licensed horse races in Tennessee. However, tourists are not allowed to participate in casinos as these are illegal in Tennessee.
Can I place sports bets on out-of-state platforms while in Tennessee?
No, you cannot legally pay for sports bets on out-of-state platforms, as these are considered unlicensed in Tennessee. You must know that Tennessee uses geolocation technology to track and verify the bettors’ location and the platforms they’re wagering in.
Can nonprofits hold raffles or charity poker tournaments in Tennessee?
Yes, nonprofit organizations can hold raffles and charity poker tournaments in Tennessee if they successfully obtain the required licenses. Before launching a charity gambling tournament or activity, nonprofits must apply for a permit from the Tennessee Secretary of State, particularly the Division of Charitable Solicitations and Gaming.
Grow Organic Traffic
Read our other articles
How to Be a Bookie: A Comprehensive Guide to Starting Your Own Sportsbook Business
Organic vs Paid Search: Understanding the Key Differences
Is Gambling Legal in South Carolina? A Guide to Current Gambling Laws
