Tennessee Gambling License & Online Casinos
Tennessee is a state in the southeastern region of the United States that has a population of over 6.9 million people. While the state is known for its country music and barbecue, it is also becoming a popular destination for gambling and online casinos. If you’re interested in starting an online casino in Tennessee, it’s important to understand the state’s gambling laws and licensing requirements.
Application process in Tennessee
To apply for a gambling license in Tennessee, you will need to submit an application to the Tennessee Education Lottery Corporation (TELC). The TELC is responsible for regulating and licensing all forms of gambling in the state. The application process involves submitting detailed information about your business, including your business plan, financial projections, and background information on key personnel.
Cost of the license in Tennessee
The cost of a gambling license in Tennessee varies depending on the type of license you are applying for. As of 2023, the fee for an initial license is $750,000, with an annual renewal fee of $75,000. It’s important to note that this fee is non-refundable, even if your application is denied.
Types of gambling allowed in Tennessee
Tennessee has strict gambling laws, and most forms of gambling are illegal in the state. However, in 2019, Tennessee became the first state in the US to legalize online sports betting. This means that online sportsbooks are now legal in Tennessee, and residents can place bets on their favorite sports teams from the comfort of their own homes. Other forms of gambling, such as online casinos, are still illegal in the state.

Taxation in Tennessee
All gambling winnings in Tennessee are subject to state income tax. The state’s income tax rate is currently 6%, and this applies to all forms of gambling, including online sports betting.
Compliance requirements in Tennessee
If you are granted a gambling license in Tennessee, you will need to comply with a range of regulations and requirements set out by the TELC. These include measures to prevent money laundering, protect players, and ensure fair gaming. You will also need to undergo regular audits to ensure that you are complying with all regulations.
Market size and growth potential in Tennessee
While Tennessee has only recently legalized online sports betting, the market is already growing rapidly. In the first month of legal sports betting in Tennessee, the state generated over $27 million in sports betting revenue. Experts predict that the market will continue to grow in the coming years, creating opportunities for new businesses and entrepreneurs.

Challenges and opportunities in Tennessee
One of the biggest challenges for businesses looking to start an online casino in Tennessee is the strict gambling laws in the state. However, the legalization of online sports betting has opened up new opportunities for entrepreneurs. By focusing on sports betting, businesses can tap into a growing market and reach a wide audience of sports fans.
Local laws and regulations in Tennessee
In addition to the state’s gambling laws, businesses looking to start an online casino in Tennessee will need to comply with a range of local laws and regulations. This includes zoning and land use laws, as well as business licensing requirements.
Payment processing in Tennessee
If you’re starting an online casino in Tennessee, you will need to be able to process payments securely and efficiently. This may involve working with third-party payment processors or setting up your own payment processing system.
Gambling addiction resources in Tennessee
As with any form of gambling, it’s important to ensure that players are aware of the risks of gambling addiction. In Tennessee, the Tennessee Department of Mental Health and Substance Abuse Services provides resources and support for those struggling with gambling addiction.