Tennessee Reminds Public That Proxy Wagering is Illegal

Proxy wagering is illegal in Tennessee, punishable by jail time.

NASHVILLE—As the NFL and college football seasons approach, the Tennessee Sports Wagering Council (SWC) is reminding residents that proxy wagering is illegal in the state.

Proxy wagering, which involves one person placing a bet on behalf of another, is a criminal offense in Tennessee. A first offense can result in up to 30 days in jail. Additionally, placing a bet with a bookie, who takes bets offline and pays out winnings, is also illegal. The SWC emphasizes that the public should be aware of these laws.

“The SWC’s primary role is the protection of the public interest of Tennessee through a safe, regulated environment, and those who wager on behalf of another in Tennessee directly contribute to an unsafe environment that can lead to risky gambling behavior as well as sports integrity and age-related issues,” stated Executive Director Mary Beth Thomas.

An NCAA survey of 3,500 individuals aged 18-22, released in April 2023, revealed that 58 percent had engaged in at least one sports betting activity. NCAA rules prohibit prospective student-athletes from betting on sports, and those caught will have their eligibility automatically revoked.

Tennessee is the largest “online-only” sports betting market in the U.S., with 1.5-2 million bettors wagering more than $4 billion a year through online sportsbooks licensed by the SWC. Licensed sportsbooks must have controls to detect and deter illegal activities and are required to report any suspicious or illegal wagering activity to the SWC. The agency can then investigate and refer evidence of criminal activity to state and federal law enforcement for potential prosecution.

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 wagering 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, including assessing the State’s privilege tax on sportsbooks and fantasy sports operators.

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