Tennessee Sports Betting Thrives Amid Legal Framework

Nashville, Tennessee — Online sports betting has become a significant part of Tennessee’s economy since legalization in 2020, generating substantial revenue amidst a framework of strict regulations.

As of 2025, Tennessee boasts 12 licensed online sportsbooks, including FanDuel, DraftKings, and MGM, attracting bettors across the state. The Tennessee Sports Wagering Council (SWC) oversees these operations, ensuring compliance with state laws that require all bettors to be at least 21 years old.

The regulations, implemented when online betting became legal on November 1, 2020, promote a mobile-only market free from any physical sportsbooks. Tennessee was the first state to launch an exclusively online model, promoting user-friendly apps for sports wagering.

The state imposes a 1.85% tax on all betting handle, rather than on profits, which is unique compared to many other jurisdictions. This structure means state revenues continue even if the sportsbooks do not turn a profit on the bets.

Since the legalization of sports betting, Tennessee has seen an impressive $14.1 billion wagered, helping to generate over $261 million in tax revenue. This income aids education, local governments, and mental health funds.

However, with the rapid acceptance of online sports betting, there has been a noticeable increase in gambling addiction, particularly among younger individuals. According to recent reports, around 250,000 residents may experience gambling disorder symptoms.

“We are seeing a younger clientele now compared to before legalization,” said Marcos Lerma from the Tennessee Institute for Gambling Education and Research (TIGER). “Additionally, we’ve shifted our approach to treatment, offering moderation paths as opposed to just abstinence.”

Despite the focus on responsible gambling, advertising from sportsbooks remains prevalent, especially during major sports seasons. National sportsbooks have spent millions on promotions, attracting new users with enticing bonus offers.

“The promotions have been aggressive,” said Braden McPherson, a junior at Middle Tennessee State University. “I started betting small amounts, but I turned a $5 bet into over a thousand with a parlay. It’s addictive.”

The landscape of sports betting in Tennessee continues to evolve amidst a backdrop of economic potential and social responsibility concerns. As the market matures, regulators will need to balance growth with the ongoing challenges of problem gambling.