Tennessee gambling law

28-3-106. Recovery of gambling losses.

Actions to recover money or goods lost at any kind of gambling or betting, and paid or delivered:
(1) If brought by the loser, shall be commenced within ninety (90) days next after such payment or delivery;

(2) If brought for the use of the spouse, child or children, or next of kin, within twelve (12) months from the expiration of the ninety (90) days;

(3) If by a creditor of the loser, within twenty-four (24) months from the end of the ninety (90) days.

Anti-Gambling Laws

39-17-501. Part definitions.

As used in this part, unless the context otherwise requires:
(1) Gambling is contrary to the public policy of this state and means risking anything of value for a profit whose return is to any degree contingent on chance, or any games of chance associated with casinos, including, but not limited to, slot machines, roulette wheels and the like. For the purposes of this chapter gambling does not include:
(A) A lawful business transaction;
(B) Annual events operated for the benefit of charitable § 501(c)(3) organizations that are authorized pursuant to a two-thirds (2/3) approval of the general assembly, so long as such events are not prohibited by the state constitution; or
(C) A state lottery of the type such as is in operation in Georgia, Kentucky, and Virginia in 2000 and authorized by amendment to the Constitution of Tennessee, if such lottery is approved by the general assembly;
(2) "Gambling bet" means anything of value risked in gambling;
(3) "Gambling device or record" means anything designed for use in gambling, intended for use in gambling, or used for gambling;
(4) "Lawful business transaction", as used in subdivision (1), includes any futures or commodities trading;
(5) "Lottery" means the selling of anything of value for chances on a prize or stake; and
(6) "Profit" means anything of value in addition to the gambling bet.

39-17-502. Gambling.

(a) A person commits an offense who knowingly engages in gambling.
(b) The offense of gambling is a Class C misdemeanor.

39-17-503. Gambling promotion.

(a) A person commits an offense who knowingly induces or aids another to engage in gambling, and:
(1) Intends to derive or derives an economic benefit other than personal winnings from the gambling; or
(2) Participates in the gambling and has, other than by virtue of skill or luck, a lesser risk of losing or greater chance of winning than one (1) or more of the other participants.
(b) The offense of gambling promotion is a Class B misdemeanor.

39-17-504. Aggravated gambling promotion.

(a) A person commits an offense who knowingly invests in, finances, owns, controls, supervises, manages or participates in a gambling enterprise.
(b) For purposes of this section, "gambling enterprise" means two (2) or more persons regularly engaged in gambling promotion as defined in § 39-17-503.
(c) The offense of aggravated gambling promotion is a Class E felony.

39-17-505. Possession of gambling device or record - Forfeiture.

(a) A person commits an offense who knowingly owns, manufactures, possesses, buys, sells, rents, leases, stores, repairs, transports, prints or makes any gambling device or record. However, it is not an offense for a person to own or possess in this state a lottery ticket originating from a state in which a lottery is lawful, if such ticket is not owned or possessed for the purpose of resale.
(b) (1) Any gambling device or record is contraband and shall be subject to seizure, confiscation and forfeiture in accordance with the provisions of the general forfeiture statute, codified in § 39-11-116 [repealed].
(2) After a gambling device or record has been forfeited to the state pursuant to § 39-11-116 [repealed], the court hearing the criminal charges resulting in the forfeiture shall order the destruction of such device or record. If the district attorney general or law enforcement agency does not believe that a gambling device or record should be destroyed in a particular case, the district attorney general shall petition the court for an alternate disposition of such record or device. If the court finds that the proposed alternate disposition reasonably ensures that the device will not be used in an unlawful manner in this state, the court may grant such petition and order the disposition of the device or record in accordance with the petition.
(c) Possession of a gambling device or record is a Class B misdemeanor.

39-17-506. Lotteries, chain letters and pyramid clubs.

(a) A person commits an offense who knowingly makes or aids in the making of any lottery. However, a person who owns or possesses in this state a lottery ticket originating from a state in which a lottery is lawful does not make or aid in the making of a lottery as prohibited by this section, if such ticket is not owned or possessed for the purpose of resale.

(b) For the purposes of this section, "making a lottery" includes the organization of, membership in, or solicitation of persons for membership in any chain letter club, pyramid club, or other group organized under any plan whereby anything of value to be given by members thereof is to be given to any other member thereof, which plan includes any provision for the increase in membership through a chain process of new members securing other new members and thereby advancing themselves in the group to a position where such members in turn receive things of value from other members.

(c) An offense under this section is:
(1) A Class C misdemeanor if the aggregate amount of money involved in the lottery, chain letter, or pyramid club is fifty dollars ($50.00) or less;
(2) A Class B misdemeanor if the aggregate amount of money involved in the lottery, chain letter, or pyramid club is more than fifty dollars ($50.00) but less than two hundred fifty dollars ($250);
(3) A Class A misdemeanor if the aggregate amount of money involved in the lottery, chain letter, or pyramid club is two hundred fifty dollars ($250) or more but less than ten thousand dollars ($10,000); or
(4) A Class E felony if the amount of money involved in the lottery, chain letter, or pyramid club is ten thousand dollars ($10,000) or more.

39-17-507. Customer referral rebates unlawful.

(a) With respect to a consumer sale, consumer credit sale or consumer lease, the seller or lessor may not give or offer to give a rebate or discount or otherwise pay or offer to pay value to a buyer or lessee as an inducement for a sale or lease in consideration of the buyer or lessee referring or giving to the seller or lessor the names of prospective customers or lessees, or otherwise aiding the seller or lessor in making a sale or lease to another person, if the earning of the rebate, discount, commission or other value is contingent upon the occurrence of an event subsequent to the time the buyer or lessee agrees to buy or lease.

(b) If a buyer or lessee is induced by a violation of this section to enter into a consumer sale, consumer credit sale or consumer lease, then such transaction is hereby declared to be a lottery and the agreement is unenforceable by the seller or lessor, and the buyer or lessee, at the buyer's or lessee's option, may rescind the agreement or retain the goods delivered and the benefits of any services performed, without any obligation to pay for them.

39-17-508. Premiums at fairs.

It is lawful and not in violation of this part for a person, upon complying with the rules of public fairs, to enter and contend for any and all such premiums as may be offered at such fairs.

39-17-509. Preemption.

The general assembly, by enacting this part, intends to preempt any other regulation of the area covered by this part. No governmental subdivision or agency may enact or enforce a law that regulates or makes any conduct in the area covered by this part an offense, a violation, or the subject of a criminal or civil penalty or sanction of any kind.

The voters of Tennessee have recently amended the State's Constitution to permit a state lottery.