Summary of the Social Poker Clubs Act 

This summary outlines the Social Poker Clubs Act, a proposed Tennessee law to legalize regulated, non-profit social poker clubs for skill-based games like Texas Hold’em. The bill addresses the outward migration of Tennesseans who travel across state lines to play, aiming to retain this activity and its economic potential locally. 

Purpose and Benefits:

Legalizes non-profit poker clubs with strict regulations (21+ age limit, no rake, no alcohol or smoking, including tobacco and electronic cigarettes).

Responds to Tennesseans leaving the state, missing local engagement and revenue opportunities. 

Projects numerous jobs per club and millions in annual tourism revenue, based on Kentucky’s social poker club model.

Safeguards and Regulations:

Enforces age restrictions (21+) to ensure legal participation.

Includes addiction prevention via self-exclusion programs.

Overseen by the Tennessee Sports Wagering Council with licensing and oversight.

Prohibits commercial profit, aligning with Kentucky’s model. 

Call to Action: 

Seeks sponsorship or support for the next legislative session to bring regulated, non-profit, skill-based recreation to Tennessee, aligning with the state’s conservative values and commitment to community-focused economic growth.

 

This act offers economic growth and recreational value for Tennesseans, supported by data and legal precedent. Refer to the attached draft bill for full details.

Draft Bill

A BILL TO BE ENTITLED

AN ACT to amend Tennessee Code Annotated, Title 39, Chapter 17, Part 5, relative to the legalization and regulation of social poker clubs.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 39-17-501, is amended by adding the following language as appropriate subdivisions:

(a) As used in this part, unless the context otherwise requires:

(30) "Social poker club" means a private venue or non-profit organization that hosts games of skill-dominant poker, such as Texas Hold'em, exclusively for recreational purposes among members or invited guests, subject to state licensing and oversight as provided in this part. A social poker club must:

(A) Be operated by a non-profit entity under § 501(c)(3) or § 501(c)(19) of the Internal Revenue Code, or a private membership-based venue with no more than two hundred (200) active members, provided that any for-profit venue operates gaming activities on a non-profit basis with no house rake, commission, or profit retained from gaming;

(B) Charge only membership dues or entry fees not exceeding thirty dollars ($30.00) per person per event, adjusted annually for inflation based on the Consumer Price Index (CPI) as published by the Bureau of Labor Statistics, with all proceeds distributed solely as prizes to participants and no portion retained as profit by the club or operators;

(C) Prohibit any house rake, commission, or fee deducted from pots or prizes;

(D) Require all participants to be twenty-one (21) years of age or older, verified by valid government-issued identification at entry;

(E) Limit operations to no more than five (5) days per week and eight (8) hours per day; and

(F) Prohibit the service, consumption, or presence of alcoholic beverages and smoking, including the use of tobacco or electronic cigarettes, on the premises at all times.

(31) "Skill-dominant game" means a card game, such as Texas Hold'em poker, where the outcome is predominantly determined by participants' skill, strategy, and decision-making, rather than chance, as determined by criteria including but not limited to the game's structure allowing multiple betting rounds, information asymmetry based on player actions, and mathematical probability influenced by player choices.

SECTION 2. Tennessee Code Annotated, Section 39-17-502, is amended by adding the following language as a new subsection:

(d) Notwithstanding subsections (a) and (b), it is not gambling, and no offense is committed under this section, for a social poker club to host or participate in a skill-dominant game if:

(1) The club is licensed by the Tennessee sports wagering council under § 39-17-510 [new section, see Section 3];

(2) All activities comply with the requirements of § 39-17-501(30);

(3) No alcoholic beverages are served, consumed, or present on the premises at any time; and

(4) The club maintains records of all events, including participant IDs and financial transactions, available for state audit.

SECTION 3. Tennessee Code Annotated, Title 39, Chapter 17, Part 5, is amended by adding the following as a new, appropriately designated section:

39-17-510. Regulation of social poker clubs.

(a) The Tennessee sports wagering council, in consultation with the department of revenue, shall establish and administer a licensing program for social poker clubs. Licenses shall be issued annually for a fee not to exceed five hundred dollars ($500.00) per club and may be renewed upon compliance verification.

(b) The council shall promulgate rules within ninety (90) days of the effective date of this act, including:

(1) Application procedures, background checks for operators, and bonding requirements;

(2) Standards for age verification, problem gambling education, self-exclusion programs, and the prominent display of problem gambling resources, including a state-approved helpline number, in all licensed venues;

(3) Annual reporting of gross receipts, with five percent (5%) of membership dues remitted to the state for regulatory costs and addiction prevention programs;

(4) Penalties for violations, including fines up to one thousand dollars ($1,000) per offense and license revocation for repeated infractions; and

(5) An appeals process for license denials or revocations, allowing applicants or licensees to request a hearing within thirty (30) days under the Uniform Administrative Procedures Act.

(c) A social poker club violating this section commits a Class A misdemeanor, punishable by a fine not to exceed two thousand five hundred dollars ($2,500) and imprisonment not to exceed eleven (11) months, twenty-nine (29) days.

(d) This section does not authorize commercial gambling or expand existing casino operations under Title 4 or Title 13.

SECTION 4. This act takes effect July 1, 2026, the

 public welfare requiring it.