Tennessee § 39-17-501 - Part definitions.

§ 39-17-501. Part definitions.

As used in this part, unless the context otherwise requires: 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 lawful business transaction; Annual events operated for the benefit of nonprofit 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; A state lottery of the type in operation in Georgia, Kentucky, and Virginia in 2000 and authorized by amendment to the Constitution of Tennessee, if the lottery is approved by the general assembly; A fantasy sports contest as defined in § 47-18-1602 and conducted in accordance with the Fantasy Sports Act, compiled in title 47, chapter 18, part 16; Lawfully accepting or placing a wager on a sporting event in accordance with the Tennessee Sports Gaming Act, compiled in title 4, chapter 51, part 3; or A low-level sports entertainment pool; “Gambling bet” means anything of value risked in gambling; “Gambling device or record” means anything designed for use in gambling, intended for use in gambling, or used for gambling; “Lawful business transaction,” as used in subdivision (1), includes any futures or commodities trading; “Lottery” means the selling of anything of value for chances on a prize or stake; “Low-level sports entertainment pool” or “pool” means a type of pari-mutuel betting: In which a participant: Pays money for participation in a pool; and Makes selections based on the participant's predictions of either the outcome of a series of athletic contests of the same sport or the statistics of individual athletes selected by the participant to assemble an imaginary team of athletes; That does not involve laying odds; and That has the following characteristics: The total or cumulative entry fee paid by an individual participant is no more than twenty-five dollars ($25.00); The total pool is no more than one thousand dollars ($1,000); and The pool is managed by an individual and not by any type of business entity; and “Profit” means anything of value in addition to the gambling bet. Acts 1989, ch. 591, § 1; 1990, ch. 945, § 1; 2001, ch. 439, § 1; 2007, ch. 349, § 1; 2009, ch. 267, § 1; 2015, ch. 134, § 23; 2016, ch. 978, § 2; 2019, ch. 126, §§ 2, 3; 2019, ch. 507, § 2. Sentencing Commission Comments. This section contains the definitions for gambling offenses. The definitions are intentionally broader than those found in prior law. The commission intends to include any scheme by which value is risked upon a chance for greater value as a “gambling” offense. The definition of “gambling” includes lotteries, chain or pyramid clubs, numbers, pinball, poker or any as yet unnamed scheme where value is risked for profit. The definition of “lawful business transaction”, however, makes it clear that futures and commodities trading is not included in gambling. This is a change from prior code § 39-6-627 , which prohibited such trading under certain circumstances as gambling. Compiler's Notes. Section 501(c)(3), referred to in this section, is codified as 26 U.S.C. § 501(c) (3). The sentencing commission terminated June 30, 1995. Sentencing Commission Comments have been retained, but do not reflect 1995 or subsequent legislation. Acts 2019, ch. 126, § 1 provided that the act shall be known and may be cited as the “March Madness and Fantasy Football Freedom Act.” Acts 2019, ch. 507, § 7 provided that the act take effect July 1, 2019, the public welfare requiring it. The act was returned without the governor's signature and became effective under the provisions of Tenn. Const., art. III, § 18. Amendments. The 2019 amendment by ch. 126 added (1)(F); and added the definition of “‘low-level sports entertainment pool’ or ‘pool’”. The 2019 amendment by ch. 507 added (1)(E). Effective Dates. Acts 2019, ch. 126, § 4. July 1, 2019. Acts 2019, ch. 507, July 1, 2019; provided that, for purposes of promulgating rules and carrying out any administrative duties necessary to effectuate the provisions and intent of this act, the act took effect on May 25, 2019. See Compiler’s Notes. Cross-References. Application for consent to petition to convene investigative grand jury, § 40-12-201 . Disposal of confiscated gambling devices, § 38-6-111 . Textbooks. Tennessee Jurisprudence, 13 Tenn. Juris., Gaming, Gambling and Gambling Contracts, §§ 2-4, 8, 9; 18 Tenn. Juris., Lotteries, § 3. Law Reviews. Book Review, Criminal Offenses and Defenses in Tennessee, 55 Tenn. L. Rev. 563 (1988). Dignity, And Danger: Human Dignity As A Constitutional Constraint To Limit Overcriminalization, 80 Tenn. L. Rev. 291 (2013). Dignity, and Danger: Human Dignity as a Constitutional Constraint to Limit Overcriminalization, 80 Tenn. L. Rev. 291 (2013). Attorney General Opinions. Lottery tickets as gambling devices, OAG 93-16 (2/22/93). Legality of redesigned gaming machines in mock casino, OAG 94-129 (11/2/94). Constitutional and statutory limits on casino gambling, OAG 94-139 (11/23/94). Effect of deletion of lottery prohibition in constitution, OAG 95-039 (4/18/95). Gambling device construed to include gambling software, OAG 98-0173 (8/28/98). Prohibitions on intranet gambling, OAG 98-0173 (8/28/98). Advertisements promoting lawful, out-of-state casino gambling, OAG 99-030 (2/18/99). Fishing tournaments where fees paid for chance to win cash or prizes, OAG 99-084 (4/5/99). Legality of machines vending purported “collector cards” simultaneous with an opportunity to win cash by playing a video game, OAG 99-146 (7/30/99). Legality of fund-raising bingo activities awarding winners cash prizes funded by payments from participants, OAG 99-191 (9/28/99). A so-called “redemption machine,” which upon payment of a fee allows a person an opportunity to play to potentially win coupons redeemable on-premises for merchandise perceived as having a greater value than the cost to play the machine, is an illegal “lottery” prohibited by the Tennessee constitution and the gambling laws, OAG 02-054 (4/30/02). A machine that upon payment of a fee dispenses a short term prepaid telephone or “psychic reading” card connected to a scratch-off type card, which, in turn, provides the opportunity to instantly win cash or other prizes, is an illegal gambling device, OAG 02-089 (8/21/02). “Reverse raffle” and “auction” involving paying money to win a prize is a prohibited lottery unless part of an annual event approved by the general assembly, OAG 03-049 (4/22/03). Legality of lottery pool, OAG 04-042 (3/12/04). Legality of leasing equipment for and conducting poker tournaments, OAG 06-046 (3/10/06). It is not lawful to conduct a lottery-ticket pool in which Tennessee lottery ticket holders pool their tickets and share in any prizes awarded on winning tickets; such a pool constitutes “gambling” and does not fall within any exceptions provided in T.C.A. § 39-17-501(1) . OAG 14-58, 2014 Tenn. AG Lexis 60 (5/23/14). It is not permissible to conduct dog-racing activities under the Racing Control Act of 1987, T.C.A. §§ 4-36-101 to 402. As with horse racing, betting on dog racing is illegal. The Racing Control Act did not authorize betting on dog racing. When the racing commission ceased to exist, so too did betting on horse racing. Legislation would be required to reestablish the State Racing Commission. OAG 14-91, 2014 Tenn. AG LEXIS 92 (9/30/14). Fantasy sports contests constitute illegal gambling under Tennessee law. OAG 16-13, 2016 Tenn. AG LEXIS 13 (4/5/2016).