Sports Wagering Council Strengthens Rules, Regulations

New Rules Take Effect June 30, 2025

New rules governing the sports betting industry in Tennessee are a critical advancement in the Sports Wagering Council’s (SWC) mission to preserve the public interest through a safe, regulated sports betting environment.

Effective June 30, 2025, the rules revisions strengthen player protections and build on ongoing efforts to eliminate fraudulent activity by patrons on the wagering platforms.

The rules also add multi-factor identification requirements for different account activities, define more responsible gaming terms, and put new conditions on the processes for voiding or canceling wagers, among other changes.

“The SWC is committed to continuously improving its rules and regulations to ensure safety, fairness and transparency for the industry and playing public,” SWC Chair Billy Orgel said. “Making these rule changes is a staff-wide effort working with the industry and consumers to solicit feedback and constantly reevaluate what’s working and what could be improved, and we
appreciate everyone who participated in this public process.”

The revisions have been approved by the Tennessee Attorney General’s Office and the Sports Wagering Council, and the new rules are posted on the SWC’s website and with the Secretary of State’s Office.

For a complete listing of the rule changes as approved, click here.

Tennessee is the largest “online-only” sports betting market in the U.S. with more than $4.7 billion wagered last fiscal year with online sportsbooks licensed in the Volunteer State.

The SWC’s primary function can be divided into three main areas: compliance, investigation and enforcement, and licensing and registration.

The SWC has significantly stepped up its efforts in the last six months to eliminate from Tennessee illegal offshore sportsbooks such as BetUS, BetOnline, MyBookie and Empire. The Sports Gaming Act and promulgated rules are the backbone of its enforcement mechanism against these bad actors.

The rules revisions include but are not limited to the following:

Multi-Factor Authentication (MFA):

•    Adds requirement for MFA when a patron adds a debit card.
•   Operator shall suspend an account if they are aware of five failed deposit attempts within 30       minutes.

Know Your Customer (KYC):

•    Account verification shall fail if the phone number/device has been found to be
associated with prior fraudulent activity.

Marketing & Advertising:

•    An operator’s internal risk management function is required to be supervised separately           from its marketing team.

Responsible Gaming:

•    New definitions for the following terms:
°     Account cool-off
°    Licensee-specific self-exclusion list
°    Responsible gaming limit
°    Self-excluded individual
°    Statewide self-exclusion list
°    Voluntary self-exclusion
•    New responsible gaming and self-exclusion reporting requirements.

Suspicious or Unusual Activity:

•    Updates definitions of “suspicious wagering activity” and “unusual wagering activity.”
•    A player’s request for withdrawal of funds may be delayed if there is indication of
unusual or suspicious wagering activity.

Minors:

•    Adds requirements for what an operator must do if they have actual knowledge that a       payment method linked to an account belongs to a minor (under 21 years old).

House Rules:

•    Requires notice in the House Rules that wager are enforceable contracts and, as such, may       be limited in terms of wagers offered, or amounts accepted as wagers, and as long as the       operator shares those limits with the bettor in advance of the wager being placed.

Proposition Wagers:

•    Adds new definitions for:
°    Pre-game prop bet, and
°    In-game prop bet.
•    Clarifies prohibition on collegiate team “in-game prop bets.”

Voiding/Cancelling Wagers:

•    Clarifies the process for notifying the SWC when voiding or cancelling wagers.

About the Tennessee Sports Wagering Council
The Tennessee Sports Wagering Council’s primary role is to protect the public interest of Tennessee through a safe, regulated sports gambling environment. The SWC oversees the licensing and registration process for online sports wagering operators, sports wagering vendors, and fantasy sports operators. The state agency monitors and enforces compliance with the Tennessee Sports Gaming Act and the Tennessee Fantasy Sports Act and related
rules, including the assessment of the State’s privilege tax on sportsbooks.