Tennessee online sports betting is now a reality. After years of legal wrangling, you can safely download Tennessee sports betting apps and make real-money wagers anywhere in the state. Best of all, with no retail sportsbooks you never have to leave your home to make a bet.

The first legal Tennessee sports betting apps went live in November 2020. You can place wagers on the biggest US sports with the most respected operators in town.

Tennessee Sports Betting Law

Tennessee online sports betting finally became legal back in 2019. The Tennessee state legislature passed the state’s first ever law permitting mobile sports betting through licensed apps. Under the Sports Gaming Act, gamblers aged 21 or over can place legal wagers as long as they are within Tennessee borders.

TN sports betting is regulated and overseen by the Tennessee Education Lottery Corporation. They have the power to issue gaming licenses for prospective gambling operators. And a year after the Sports Gaming Act passed, the first four operators opened their app stores to gamblers.

Tennessee online sports wagering provisions:

• Limited to gamblers aged 21 or over
• Mobile and internet-only gambling
• Individuals working in a sports organization barred
• TN sports betting is overseen by Tennessee Education Lottery Corporation
• Some college sports wagering prohibited
• Sportsbooks banned from extending credit
• Operators are required to implement responsible gambling measures

What forms of gambling are legal in Tennessee?

What is the 10% Hold Rule?

One of the big issues that the Tennessee online sports betting industry has is the ‘hold’. Under the state’s gaming laws, operators must hold at least 10% of all their betting revenue. That means paying out 90% or more from all winning wagers.

Specifically, it amounts to 10% of total revenue minus the annual payouts made to gamblers. And if the operators don’t hit that mark, they risk paying a fine worth up to $25,000.

Some TN sports betting operators are complaining that the 10% hold makes them uncompetitive against betting providers in neighboring states.

It could mean worse odds for Tennessee sports bettors down the line. Worse, it could force TN gamblers to try out offshore sites and risk their bankrolls.

Tax Rates on Sports Wagering

Tennessee has some rather strict tax rates for operators and players. Operators must pay a 20% tax on all sports wagering revenue. In addition, they must pay a $750,000 license fee prior to starting operations.

There are set tax rates too for Tennessee gamblers. The Tennessee Lottery will take 25% of any total winnings for tax purposes. And because you need a Social Security Number to open a TN betting account, there’s no way to avoid the cut.

On your federal income tax return, you can report sports betting wins if they meet the threshold. Make sure you use Form 1040 to report any gambling winnings at the end of the tax year.

Limits on College Sports Betting

As in states like New Jersey and Colorado, TN online sports betting carries a few restrictions regarding college sports. It is legal to bet on college sports in Tennessee, but you won’t be allowed to make some in-game bets on college basketball and other sports are strictly prohibited.

Daily Fantasy Sports Betting in West Virginia

In most states, the legality of Daily Fantasy Sports has largely hinged on whether the state determines it a game of skill or a game of chance. In the case of West Virginia, there is no specific legislation deeming daily fantasy sports legal or illegal. As a result, DFS becomes de facto legal status, because the State Attorney General judged DFS not to contravene previous state betting law prohibiting games of chance.

In other words, daily fantasy sports is legal in West Virginia and you can play at one of these top DFS sites now.

Tennessee Licensed Sports Betting Apps

Tennessee online sports betting got off to a promising start in November 2020 with the launch of 4 apps. There are now 5 in operation, with more big hitters to follow. As the Volunteer State has no retail sportsbooks, all TN sports betting sites are online only.

BetMGM

Following successful launches in New Jersey, Michigan, and 7 other states, BetMGM now has a mobile sports betting app in Tennessee.

New customers can earn a $600 risk-free bet as well as the same great promotions found at other BetMGM sites. Bet on hundreds of sporting events and get regular parlay boosts and other promotions and bonuses.

Action 24/7

Action 24/7 is a small newcomer to the regulated US sports betting market. However, the homegrown company has managed to launch its mobile apps in both Tennessee and Mississippi with only a few hiccups along the way.

In fact, Action 247 is the only Tennessee-owned sports betting site in the state and even boasts a customer support service based in Nashville. Best of all, Action 247 has over 100 partner outlets where customers can make cash deposits and withdrawals.

DraftKings Sportsbook

DraftKings is a leading supplier of daily fantasy sports (DFS) and online wagering in the US. They went live in November 2020 as one of the first legal sportsbooks in the state. DraftKings also runs online sportsbooks in virtually all regulated US states, like New Jersey and Michigan.

New DraftKings sportsbook customers can earn a $50 free bet when they open an account and make a first deposit. DraftKings will also match first deposits 20%.

FanDuel Sportsbook

FanDuel Sportsbook also launched early on as Tennessee went live with legal online sportsbooks. Like DraftKings, FanDuel is a major supplier of daily fantasy sports contests to US gamblers. They also run successful online sportsbooks and retail sportsbooks in states like Pennsylvania.

In November 2020, FanDuel signed a partner deal with the Memphis Grizzlies NBA team. Despite having no retail sportsbook presence in Tennessee, FanDuel will have marketing in place at the FedExForum.

FanDuel is offering new Tennessee sports betting customers a risk-free bet up to $1,000. If your first bet loses, you will be refunded up to the same value with a free wager.

William Hill

UK betting giant, William Hill, launched its TN online sports betting app in March 2021. New customers can claim a timely welcome bonus worth $2,021 in the form of a risk-free bet.

William Hill is one of Britain’s oldest bookmakers and enjoys a foothold in many US jurisdictions, such as New Jersey and Pennsylvania. As well as futures and outrights, William Hill offers markets on all the big US sports and full in-game wagering.

Getting Started With Tennessee Sports Betting