When Tennessee’s regulator launched four digital sports betting operators Nov. 1, 2020, the state made history. Tennessee, the fourth state to launch that year, was the first in the U.S. to legalize and go live with only digital sports betting platforms.
BetMGM, DraftKings, FanDuel, and Tennessee Action 24/7 were the first four operators to go live, with Action 24/7 the first wholly locally owned sportsbook in the U.S.
The Tennessee launch capped a busy year for U.S. sports betting. Six states legalized some form of it, including four by voter initiative. While state legislatures in Washington (in-person betting only) and Virginia (retail and digital wagering) legalized, voters in Louisiana, Maryland, Nebraska, and South Dakota legalized at the polls. And before operators in Tennessee went live, most also did so in Colorado, Illinois, and Washington, D.C.
Since Tennessee’s digital-only introduction, lawmakers in Vermont and Wyoming have followed suit with the same setup. Five years in, 12 operators are offering legal wagering in the Volunteer State.
There have also been key changes to the regulatory and legal setup in the state. In particular, the Sports Wagering Council (SWC) has replaced the Tennessee Education Lottery as the regulator, a 10% hold cap has been removed, and there was a shift from a 20% flat tax on adjusted gross revenue to a 1.85% tax on handle. Tennessee remains the only U.S. state to tax operators on handle versus revenue.
New responsible gaming regs this year
In May, the SWC rolled out changes to its responsible gaming rules, including requiring operators to suspend accounts immediately after five failed deposit attempts occur within 30 minutes and notifying consumers ahead of imposing a betting limit. In addition, the new regulations include updated definitions of multiple responsible gaming terms. The SWC is also active on social media, pointing consumers to its rules, offering up responsible gaming tips, and sharing stories about gambling addiction.
Tennessee has seen tremendous growth in its sports betting market. For November 2020, the first full month of wagering, operators took $131 million in bets and paid the state $2.4 million in tax revenue. In September 2025, the most recent month for which a revenue report is available, Tennessee operators took $565.3 million in bets and paid the state $10.4 million in tax revenue.
Timeline of key events
Here is a list of key events in Tennessee sports betting since lawmakers legalized in May 2019.
Sept. 28, 2020: First official partnership between a pro sports team and sportsbook announced as BetMGM and the Tennessee Titans reveal deal.
Nov. 1, 2020: Action 24/7, BetMGM, DraftKings, and FanDuel go live on the the first day of legal sports betting.
Nov. 1, 2021: Mary Beth Thomas appointed to head up the SWC in advance of it taking over sports betting regulation. Thomas was general counsel to the Tennessee Secretary of State.
Jan. 1, 2022: Tennessee Lottery officially hands over regulation of sports betting to the SWC.
July 1, 2023: The new handle tax goes into effect. The Tennessee legislature becomes the first in the U.S. to switch to a handle tax. The change is implemented because lawmakers feel the state isn’t getting enough tax revenue.
July 1, 2023: Operators are no longer required to hold 10% of handle. Tennessee’s state legislature is the only one in the U.S. to have imposed such a requirement, but operators were repeatedly unable to meet the requirement and were fined.
Nov. 7, 2024: The SWC announces that one of the most well-known offshore sportsbooks, Bovada, has shuttered in Tennessee, after the regulator sent a cease-and-desist letter and issued a $50,000 fine.
April 8, 2025: The SWC rolls out its updated advertising and responsible gaming guidelines.
Oct. 23, 2025: BetWhale.ag, Kickr, and ReBet cease operations in Tennessee, per a SWC press release. The companies are the latest since the regulator began a campaign to rid the state of offshore and unregulated companies.
