Not So Fast, My Friend! Betting on Behalf of Another Person is Illegal in Tennessee

NASHVILLE-- Before the start of the NFL and college football seasons, the Tennessee Sports Wagering Council (SWC)
is reminding everyone in Tennessee that proxy wagering is illegal.

Proxy wagering, or the act of one individual betting on behalf of another, is a criminal offense, punishable with up to 30 days in jail on the first offense. It is also illegal to place a sports bet with a bookie, which is a person who takes bets offline and then pays out winnings, and the SWC wants the wagering public to be aware of Tennessee law.

"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," Executive Director Mary Beth Thomas said.

An NCAA survey of 3,500 18-22 year olds, released in April 2023, showed 58 percent having engaged in at least one sports betting activity. Additionally, current NCAA rules say prospective student-athletes - high school student-athletes who have been solicited by an NCAA school - are banned from sports betting and a student-athlete's eligibility will be automatically revoked if they are caught.

Tennessee is the largest "online-only" sports betting market in the U.S. Between 1.5-2 million bettors are wagering more than $4 billion a year in Tennessee on sports through online sportsbooks licensed by the SWC.

Licensed sportsbooks have controls in place to identify and deter illegal activity, and they have an obligation to notify the SWC immediately of suspicious or illegal wagering activity. When the SWC receives a report of illegal activity, SWC investigators are able to access account information to determine whether there is evidence indicating that criminal activity may have occurred. The agency refers this evidence 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 and related rules, including the assessment of the State's privilege tax on sportsbooks and fantasy sports operators.

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