Tennessee’s Only Homegrown Sportsbook Exits the Market

Tennessee’s Action 24/7, the state-owned and licensed online sportsbook, has stopped operations, ending its five-year run in Tennessee’s regulated betting market.

Nashville-Based Sportsbook Shuts Down, Leaving Ten Licensed Operators

The Nashville-based company posted a notice on its website saying it would stop taking bets right away. The company assured customers that it would settle and pay out any existing bets as usual. The company did not give a reason for its decision to close down.

In its goodbye note, the company stressed its deep local roots, pointing out that most money put into the business came from people living in Tennessee. The operator thanked players across the state for backing them and believing in them for so long. It took pride in being set up and run by Tennesseans instead of a big national gambling company.

The shutdown cuts the number of approved online sportsbooks working in Tennessee to ten. The ones still around include big national names like DraftKings, FanDuel, Caesars Sportsbook, BetMGM, bet365, and Fanatics Sportsbook. The state’s Sports Wagering Council keeps an eye on all of these.

Tennessee’s rules for sports betting have been seen as tough for companies to work with. Unlike most places in the US, the state taxes bets based on how much money is bet in total, called the handle, rather than on what the sportsbooks earn. This setup means companies have to pay taxes even in months when they lose money, which many say makes it harder to make a profit. Additionally, Tennessee does not share each company’s monthly betting numbers with the public, which limits how much people can see about how well the market is doing.

Court Battles and Enforcement Efforts Shape Tennessee Betting Scene

Action 24/7 faced some rough times in the market. About a year after it started, state lottery officials put its license on hold. They worried about some shady financial issues, like people allegedly misusing credit cards. This happened right before the NCAA men’s basketball tournament, which is a super busy time for betting. The company did not like this decision and took it to court. They said the officials did not follow the right steps and that the timing hurt their business.

Later, a judge gave them a break, letting them open up again before the tournament’s later games. Outside the legal betting market, Tennessee officials have stepped up their fight against unauthorized gambling. In the final months of 2025, they slapped fines on both local and foreign sportsbooks running without permission.  Furthermore, the state has gone after prediction market platforms and sweepstakes-like gambling websites that officials think cross the line between legal contests and unlawful betting.