Tennessee Sports Betting Guide

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Tennessee may not have casinos or racetracks, but soon it will offer online sports betting. The Volunteer State is one of nearly two dozen states that have legalized sports betting since the Supreme Court ruling that struck down the Professional and Amateur Sports Protection Act (PASPA).

The state officially legalized Tennessee sports betting in May 2019, despite Gov. Bill Lee refusing to sign the bill. Now, it is a matter of getting the industry off the ground. And we finally have a promise from regulators that launch date will come on Nov. 1, 2020.

Currently, four online sportsbooks have received conditional licenses and will be open to all bettors in the state over the age of 21 upon launch. Three more sportsbooks have applied for licenses, but their names have not been released yet. The Tennessee Education Lottery Commission (TELC) will oversee and regulate the state’s online betting apps.

You will see major sportsbook players from other states, like FanDuelDraftKings and BetMGM. There is room for some new players to get into the Volunteer State too though, like Action 24/7, a Nashville-based online sportsbook.

Tennessee’s unique status as a state with hardly any gambling and more open licensing than other states means it could surprise us as the industry develops.

PlayTenn is here to cover all the latest TN sports betting news, including which operators will be in the state when they will launch, and what kind of online betting apps and bets they will offer.

What we know about Tennessee sports betting

When it comes to TN sports betting, things are starting to take shape. The Sports Betting Advisory Council pushed through its final recommendations in March. In April, amidst coronavirus closures shutting down parts of the lottery, the TN Lottery Board managed to convene over the phone to finalize and adopt the regulations that will dictate online sports betting in TN.

Now the state actually has applications to process. While the group technically has 90 days from the time of the submitted application, TN Lottery CEO Rebecca Hargrove assured the public they will be live before November 2020. There are currently four completed applications. The completed applications are DraftKings, BetMGM, FanDuel, and a local company called Action 24/7.

Three more operators have applied for conditional licenses, but the TEL has not released their names.

Here is a look at what needs to still happen before TN sports betting can go live:

  • TEL conditionally approves licenses
  • Conditionally approved licensees satisfy the TEL requirements to begin live testing

The number of applicants could still grow from the seven that are in process as of October, but whether or not they will be able to launch before Nov. 1 as well is less clear.

Tennessee online sportsbooks launching by Nov. 1

At the August Lottery Board meeting, the group announced intentions to get the Tennessee online sportsbook market launched before Nov. 1, 2020.

Regulators at the lottery have now conditionally approved the first four operators that have applied, and continue to state that launch will be on Nov. 1, 2020. The operators are:

BrandProjected Launch
DraftKingsNov. 1, 2020
FanDuelNov. 1, 2020
BetMGMNov. 1, 2020
Action 24/7November 2020

It is unclear whether the other three operators that have applied for conditional licenses will be ready to launch by Nov. 1, or plan to launch at a later date.

 

Tennessee sports betting timeline

Tennessee sports betting is not even live yet, but plenty has already taken place to get us to this point. Here is a look at key dates in Tennessee sports betting history:

October 2020

On Oct. 5, the TEL held a meeting and announced they conditionally approved a fourth sportsbook operator, Nashville-based Action 24/7. The sportsbook is currently the only local brand to receive a conditional license.

The TEL also stated three other operators applied for licenses, but did not release the operator’s names.

September 2020

On Sept. 23, the TEL announced that they had conditionally approved the first three sportsbook operators to launch in the state on Nov. 1. DraftKings, FanDuel, and BetMGM were all conditionally approved as sports betting operators.

August 2020

In the history of Tennessee sports betting, Aug. 18 and 19, 2020 will be remembered as the day we finally started making real progress towards launching the first sports betting apps in the state. After two days of meetings, the TN Lottery announced they had four completed operator applications they were currently vetting. Moreover, they plan to have those apps up and running no later than Nov. 1.

Another interesting development from the meetings was how the lottery would handle sportsbooks that did not maintain the 10% hold requirement. The fine for not meeting the mandate is a mere $25,000, but the board did say that they would consider suspending and even potentially withholding license renewals from egregious violators.

The other thing ironed out regarding the hold mandate is how it would be measured. The group considered daily or weekly accounting, but settled on operators averaging out a 10% hold across a calendar year.

July 2020

The TN Lottery finally approved something, but it isn’t an operator license application. The group did approve the first four sports betting-related licenses in the state, tapping four vendors for approval. These licenses come at a much lower cost than the $750,000 needed for operators, which might explain why those applications are coming in but operators are still on the sidelines.

June 2020

Despite the application opening up two months prior, TN Lottery reported at its June meeting that there were still no completed sports betting operator applications. The state had three partial applications, but one of them was reticent to finish the paperwork, triggering the 10-day countdown to pay the full $750,000 licensing fee. TN Lottery denied the operator’s request for an extension.

April 2020

In mid-April, the Tennessee Lottery Board met and approved finalized regulations that will govern the sports betting industry going forward. Those finalized regulations settled on a 10% hold mandate for all operators, which goes against the recommended 5% of the Advisory Council. Two days later, the Lottery released the paperwork for potential operators to apply as a licensee.

March 2020

As the town of Nashville started shutting down over COVID-9 concerns, both the Advisory Council and the TN Lottery Board managed to meet and make progress on proposed regulations for the sports betting industry. Around the same time, lawmakers also introduced legislation that could potentially give the Advisory Council more control over the industry. At the time, the bill’s authors expressed concern the TN Lottery Board might be overstepping the power afforded to them by the law.

February 2020

After a pair of meetings that addressed many concerns about the proposed regulations, lawmakers and other interested parties expressed concerns about the state of the regulations. As a result, the advisory board will meet once again to vote on and discuss the latest draft of regulations.

January 2020

The 45-day public comment period produces over 300 comments criticizing the first round of proposed TN regulations. The advisory board has roughly a month to come up with a revised draft.

November 2019

Months passed as the lawmakers tasked with appointing members of the Sports Betting Advisory Council. It is November by the time the 10-person panel is set. Thankfully, they get to work quickly and a first draft of regulations appears shortly before Thanksgiving.

May 2019

After a month with no action, Gov. Lee returned the bill to the legislature without his signature. While he did not veto it, it passed into law without his approval. With his decision, Lee included the following message:

January 2019

Rep. Rick Staples files a bill in the House to legalize sports betting in Tennessee. Concurrently, a similar bill is introduced in the Senate.

Which operators might have a Tennessee sports betting app?

The good news for sportsbook operators is that there are no in-state casinos or racetracks these organizations have to partner with in order to access the TN mobile betting market.

With that in mind, the process for getting into the Tennessee online sports betting industry is more wide-open than just about any other state. In theory, a company that has no background in sports betting at all could potentially apply for a Tennessee sportsbook. With no limit on the number of the available licenses, there is potential for any newcomer with a satisfactory application and money to pay the upfront license fee of $750,000 could get involved.

Now, that upfront fee is much smaller than other states, but it is still a large amount of many that may detract those who are not involved in wagering elsewhere in the US. For those operators who are used to paying millions of dollars for licenses to get into a new state, the small cost of doing business in Tennessee should not be a problem.

With that in mind, here’s a look at the more probable operators we will see opening up online sportsbooks in Tennessee:

FanDuel Sportsbook

FanDuel Sportsbook has applied to be an operator in Tennessee and received a conditional license to do so. They are expected to lunch on Nov. 1, 2020.

DraftKings Sportsbook

DraftKings Sportsbook has also received a conditional license to offer sports betting in the state beginning on Nov. 1, 2020.

BetMGM Sportsbook

It is no surprise that BetMGM will launch in Tennessee. In August 2020, IAC invested over $1 billion in MGM Resorts International and made it clear that their intent was to expand MGM’s online presence. Then in late September, BetMGM landed the first sports betting partnership with a professional sports team in Tennessee.

BetMGM is the first sports betting partner of the Tennessee Titans. The online sportsbook has received its conditional sports betting license and is also expected to launch in November 2020.

Action 24/7

Action 24/7 became the fourth sportsbook to receive a conditional license in Tennessee in October. Many outside of Tennessee have not heard of this local brand. Action 24/7 boasts a “made for Tennesseans by Tennesseans” approach.

The company currently offers free-to-play games on their site, and has a sign-up bonus for new users that will be credited to their accounts when the brand officially launches. The TEL has not received completed background checks for the company’s provider, Amelco, which could delay their launch to late November or early December.

Caesars Entertainment

There may be no Caesars properties within Tennessee state lines, but it is no exaggeration to say the casino corporation has the state surrounded. Here is a look at how far some Caesars properties are from major Tennessee cities:

  • Memphis, TN to Horseshoe Tunica: 45 minutes
  • Gatlinburg, TN to Harrah’s Cherokee: One hour
  • Knoxville, TN to Harrah’s Cherokee: Two hours
  • Nashville, TN to Harrah’s Metropolis: Two and a half hours

Using its existing database of customers at these surrounding properties, not to mention the customers that frequent Caesars’ new owner, Eldorado Resorts, in Missouri, the company has a good batch of potential bettors to reach out to when TN sports betting starts.

BetRivers

When it comes to competing in Tennessee, BetRivers does not have brand recognition on its side. The online sportsbook’s parent company, Rush Street Entertainment, only operates casinos in Pennsylvania, New York, and Illinois.

The closest property to Tennessee is the Chicago-area Rivers Des Plaines Casino. Unfortunately, it is on the wrong side of Illinois to appeal to possible Tennessee companies.

Since Illinois residents will have to register for sports betting in person for the first 18 months sports betting is live in Illinois, the only customers BetRivers will pick up are ones that visit the property. It is highly unlikely southern Illinois residents will make the six-hour drive each way to do that.

What is working for BetRivers is that the company is working to be first to market in as many states as possible, including Indiana. While Indiana is not adjacent to Tennessee, it is close enough to the Volunteer State that TN bettors might be more familiar with the BetRivers name than they were a year ago.

FOX Bet

There is hardly anyone in the US who doesn’t recognize the FOX brand. Most recognize FOX Sports as well. While the idea that the sports media company is involved in sports betting may still be news to some people, the FOX name is perhaps one of the most recognizable brands in all of sports betting.

With that in mind, it is certainly possible FOX Bet will try to leverage that brand awareness into a Tennessee online sportsbook. The Stars Group, which owns FOX Bet, currently has only launched the brand in New Jersey and Pennsylvania. However, with the lax requirements and low fees to come to Tennessee, it certainly seems possible it will expand south if given the chance.

BetAmerica

The BetAmerica name may not ring a bell with many Tennesseans, but its parent company certainly will. Churchill Downs in neighboring Kentucky is considered to be one of the best horse racing companies there are.

While there are no racetracks in Tennessee, there is plenty of familiarity with the Kentucky Derby and the Bluegrass State racing industry. Moreover, advanced deposit wagering (ADW) through the BetAmerica racing app is already available in TN.

What to expect once sports betting apps hit the market

Mobile Sports Betting in TennesseeOnce online betting goes live, you’ll be able to access the online sportsbooks from your desktop computer or your phone.

If you want to access online sportsbooks on your computer, you can access all the regulated operators on your desktop or laptop browser. Your computer will likely ask you to add an extension from GeoComply in order properly geolocate.

GeoComply is considered the top company when it comes to geolocation technology. The company works with every regulated market in the United States, so you should feel confident your computer will be safe and secure with the GeoComply extensions.

How geolocation works and what it means

If you want to bet on your phone, more often than not, you will need to download an app to bet. The reason you can’t just pull out your cell phone and bet on your browser is that your device cannot geolocate to the degree necessary in order to meet regulatory requirements in most US markets.

What does it take to geolocate? Services like GeoComply use your IP address, your phone’s internal GPS system, and nearby cell phone towers to determine precisely where you are.

Since the laws for sports betting limits wagering to within the Tennessee borders, there are systems in place to ensure that no one can spoof locations using things like a VPN.  With accuracy being paramount, it is possible those on the very edge of the state line may be mistakenly read as not in the state. However, regulators and operators would much rather have a false negative than a false positive, so they err on the side of caution.

Getting set up with Android betting apps

Basically every online sportsbook has an Android app available to download directly from its website. The Google Play Store does not allow gambling apps, so don’t bother searching in there for the sports betting app you want to install.

Instead, go directly to the website of the app you are looking for and, most of the time, there will be a big button or notification letting you know to click on it to allow the download to begin.

You may receive some prompts from your phone about allowing third-party downloads. If you want to go ahead and change your settings in advance:

  • Open up the Settings menu on your Android device
  • Select “Security”
  • Check the box  next to “Unknown Sources”
  • A pop up will appear. Select OK to verify you want to enable third-party downloads

If you do not change settings in advance, a series of pop-ups when you try to download from a sports betting site that will lead you through the same menus as well.

Getting set up with iPhone betting apps

Unlike Android, the Apple App Store allows gambling apps to be listed. However, not all online sportsbooks have betting apps that are listed in the Apple App Store. There is a solution for iPhone customers though, also from GeoComply.

Sports betting sites like BetRivers do not have an Apple app, but iPhone users need only download an app from GeoComply called GeoGuard. What this app does is provide the level of geolocation necessary to make betting on BetRivers on your phone’s browser possible.

Mobile sports betting features and options

Mobile sports betting in TennesseeOnce you have the apps downloaded on your phone, you’ll notice several of them look and feel fairly similar. Most online sportsbooks use a simple, three-column setup.

  • Left column: You’ll find a long list of sports on the left side, with the in-season pro leagues and live betting (if available) at the top.
  • Middle column: In the middle column is where the games appear after you select your sport. There are filters to find the right game, plus links for more bets for each.
  • Right column: On the right side is your bet slip, which is where you store your game and bet selections before finalizing them. You can bet singles, link bets into parlays and set the amount to wager here.

Live betting (also known as in-game betting) will be new to most TN bettors, which involves betting on games already underway. It adds to the game excitement while you watch. Betting lines automatically adjust as the action unfolds. Tennessee law requires in-play betting uses data supplied by the pro leagues.

Cash-out betting is another new feature, which allows you to redeem a bet early. The action in the match (or matches for parlays) will determine the price you are offered to cash your bet in early.

The massive coverage of sports will really impress you. These include motorsports, golf, tennis, soccer and even geo-specific sports like rugby, cricket, or cycling.

With the sports betting apps regulated by the TEL, there should be no issues with payments. If any sort of problem does arise, customers can report problems directly to the Tennessee Lottery.

In other states, the books accept credit or debit cards, PayPal, and bank transfers. It is currently unclear if all of these options will be available in Tennessee as well.

The current regulations state that all transactions and deposits on sports betting sites need to begin with a cash transaction. As written, that means there are potentially no credit card deposits. There will be plenty of alternatives though, including e-wallets like PayPal, prepaid cards, and debit and ACH transactions.

Tennessee sports betting laws and regulations

There really is not a state like Tennessee when it comes to sports betting. Its unique status as a state with minimal gambling options means it is largely dealing with new territory for TN bettors and lawmakers.

The results so far are that the proposed regulations are rife with problems. The good news is that very little of the problems with regulations are codified into law, so there is still time and potential for these issues to get resolved.

Before going into detail about proposed regulations that might happen, let’s run down what is already in the law when it comes to Tennessee sports betting.

Tax rates and where the tax dollars go

When it comes to the basic elements of the Tennessee sports betting laws, these are the important numbers to know:

  • $750,000 upfront licensing fee for all operators
  • $50,000 annual renewal fee
  • 20% tax rate

Compared to other states, the licensing fee is on the low side of things, while the tax rate is on the high side of things. Especially considering it will be an online-only marketplace.

Here is how all of the money generated by sports betting taxes and licenses is distributed to the state:

  • 80% goes into the lottery for education account where Lottery proceeds are also deposited.
  • 15% goes to the TN General Fund
  • 5% goes to mental health and substance abuse programs specifically focused on problem gambling

Moreover, TEL has to put together an annual report looking at how this 5% of sports betting tax dollars is being used to curb problem gambling in the state. That report will go to the governor as well as the speakers of the senate and house. The report will include itemized lists of how the money is spent as well as progress reports on addressing problem gambling issues.

There are some limits on college sports betting

Those Vols fans and backers of the Vanderbilt Commodores, be aware that there are some limits on what you can bet on regarding college sports. Some states ban betting on college games altogether, while others will not let people bet on state teams or events taking place within the state.

Tennessee sportsbooks will offer odds on college games, but one thing you will not find is any in-play betting. In-play betting, which offers updated odds after basically every play is a very popular form of wagering that will not be able during marquee events like the College Football Championship or March Madness.

Additionally, there are no prop bets on individual performances by college athletes nor will there be any bets related to possible injuries of players.

There are other official league data limits on in-game wagering

If in-game wagering sounds fun to you, be aware there are other limitations, but these will impact sportsbooks themselves more than you as a bettor.

Tennessee betting regulations stipulate that any book that offers in-game wagering has to use official data to power those bets. That means sportsbook operators will either need to work with the leagues directly or use the services of an approved data partner like Sportradar to power those services.

How is Tennessee different from other states?

As mentioned, the proposed regulations for Tennessee sportsbooks include some interesting and unprecedented elements that could create problems for both bettors and sportsbooks alikes.

Here is a look at the three most problematic inclusions:

#1: The mandatory hold requirement

No state has ever mandated an amount of hold, which is a good thing, as in some new markets, hold is more like 5%. While the regulators have come down from 15% to 10%, the mandate still presents a number of potential problems for both operators and customers.

#2: Forced participation in the Global Lottery Monitoring Service (GLMS)

Requiring sportsbooks to utilize some sort of monitoring service is not uncommon in many state sports betting regulations. It is beneficial to utilize services like these to keep an eye out for any suspicious betting activity.

What is unusual is requiring to use a specific organization, in this case, the Global Lottery Monitoring Service (GLMS). The mandate raised some eyebrows largely because the CEO of the Tennessee Lottery, Rebecca Hargrove, has times to GLMS through her role as president of the World Lottery Association.

Given the prevalence of similar groups to GLMS with more sports betting focus, like Sports Wagering Integrity Monitoring Services (SWIMA), this extra hoop could be a potential deterrent for possible TN operators.

Other betting opportunities

While most forms of gambling are illegal in Tennessee, there are a few options that already exist for Tennesseans that would like to gamble.

Daily fantasy sports is legal in Tennessee

Unlike in many other states, Tennessee has a law that makes daily fantasy sports (DFS) contests legal.

Gov. Bill Haslam signed the bill in April 2016 even after the TN attorney general had published a negative opinion on DFS games.

Although there are many DFS sites, DraftKings and FanDuel dominate the market.

Unlike traditional sports betting, these sites let you enter contests. You pick a lineup of players and challenge other lineups to win money. These can be head-to-head contests, tournaments or one of many variations of these themes. Popular games include 50/50, where half the field doubles their money. You can also pick lineups and challenge many other people using either a single lineup or many variations of it.

With the big DFS companies setting up full sportsbooks in other states, it will be interesting to see how comprehensive betting affects participation in these picks contests.

ADW apps are a horse betting option

Another way you can bet in TN right now is via the horse racing betting sites, also known as advanced deposit wagering (ADW) apps.

To be clear, pari-mutuel wagering is not expressly legal in Tennessee. There are no racetracks nor is there any sort of regulatory body that oversees horse racing in the state, as there is no horse racing.

However, there are no laws expressly outlawing ADW apps either. These apps accept wagers on horse races that run in regulated horse racing jurisdictions and the moneys go into regulated pari-mutuel wagering pools. In other words, while Tennessee has no oversight on these races, there are regulatory bodies making sure everything is on the up and up.

Three sites you can use for betting on these races are TwinSpires, TVG, and BetAmerica.

All three sites allow you to bet on horse races via pari-mutuel pools at racetracks across the country. In addition, they offer livestreams, past performance data, and plenty of ways to bet. You can bet win, show or draw, pick the finishers in the right order, or bet over several races with the “pick 5” and similar contests.

FAQ

How old do I have to be to bet online?

Sports bettors in Tennessee need to be at least 21 years old in order to wager. Online sportsbooks will utilize your date of birth and a partial Social Security number toverify your age before allowing you to bet.

Can I bet from out of state?

No, if you are not within the state lines of Tennessee, you will not be allowed to wager on TN betting sites.

However, you also do not need to be a Tennessee resident in order to take part in a Tennessee online sportsbook. Anyone who is at least 21 years old and within state lines is eligible to bet online.

How will the sportsbooks know where I am?

Online sportsbooks utilize geolocation technology to determine whether or not a bettor is within the state. On your computer, sportsbooks and geolocation providers like GeoComply use your IP address and a geolocation plugin to verify your location. If you are using a betting app on your phone, the app utilizes things like your phone’s GPS functionality and nearby cell phone towers to locate precisely where the bettor is.

Who regulates the Tennessee sports betting market?

The Tennessee Education Lottery (TEL) regulates and oversees all sports betting within the state.

Do I have to pay taxes on my winnings?

Like all income, gambling winnings are subject to taxation and should be reported on your tax return. Be advised, you will not necessarily receive a W-2G gambling tax form from sports betting operators unless you trigger a certain threshold of winnings. For most sites, that amount is $5,000.

The $5,000 threshold is the number the majority of sportsbook use to trigger tax paperwork since that is the amount where casinos and sportsbooks are required to start withholding 25% of winnings for tax purposes.

Can I bet on college sports in Tennessee?

When it comes to college sports betting in Tennessee, some things are on the table and other things aren’t.

You’ll be able to wager on collegiate sporting events as part of a parlay or with a spread or moneyline bet. You will not be able to do any in-game betting around college sports, nor will there be any prop bets based on an individual college athlete’s performance.