WOYALE.
What's legal
Tennessee allows online sports betting only. There are no retail sportsbooks. The Sports Wagering Council licenses operators, and the first licenses date from November 1, 2020. You must be 21 or older and physically in Tennessee when you place a bet.
The Council's register lists nine licensed sportsbooks. Check it before you deposit anywhere. The Council states that betting with any operator not on the register is illegal in Tennessee. Licensed operators must follow responsible-gaming, consumer-fund and data-privacy rules, and they pay state tax that funds scholarships and local infrastructure.
Crypto and offshore sites
Licensed US sportsbooks generally do not take crypto deposits. A crypto sportsbook that is not on the Council's register is unlicensed in Tennessee. The Council says betting with an offshore, unlicensed site is a crime under Tenn. Code Ann. section 39-17-502, and that no regulator can help you recover money you cannot withdraw.
The Council has also acted against prediction markets. On January 9, 2026 it sent cease-and-desist letters to Kalshi, Polymarket and Crypto.com, demanding they stop offering sports event contracts in Tennessee, void open contracts and refund deposits by January 31. The letters cited fines of $10,000 for a first offense, $15,000 for a second and $25,000 for a third or later.
What's changing
Kalshi challenged Tennessee in federal court and won an injunction at first. On September 25, 2026 the Sixth Circuit, which covers Tennessee and Ohio, vacated that injunction. It held that Kalshi's sports contracts are not swaps under federal commodities law and that federal law does not override the states' gambling laws. The ruling came at the preliminary-injunction stage, and the cases return to the district courts. The Third Circuit went the other way for Kalshi in a New Jersey case on April 6, 2026, so the Supreme Court may have to settle the question.
Tax note
Tennessee has no state income tax on individuals. The Hall tax on interest and dividends was repealed from 2021. Federal tax still applies to winnings at your ordinary rate, and large payouts are reported on a W-2G. Keep records of wins and losses. The Woyale tax guides cover the federal rules with examples.
Common questions
Is there any in-person sports betting in Tennessee?
No. Tennessee is online-only, and all legal betting goes through licensed apps and sites.
Did Tennessee ban Kalshi and Polymarket sports contracts?
The Council ordered them to stop in January 2026. The Sixth Circuit then sided with the states on September 25, 2026, but the national legal fight is still open.
Can you use crypto on a Tennessee sportsbook?
Licensed books generally do not take crypto deposits. Offshore crypto books are unlicensed in Tennessee.