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Chart providing details of Tennessee Gambling Laws. Tennessee Gambling Laws at a Glance What are the Penalties for Illegal Gambling in Tennessee? (1) “illegal gambling business” means a gambling business which—. (i). is a violation of the law of a State or political subdivision in which it is conducted;. (ii). What are the laws that make gambling illegal? Illegal gambling laws may be found in Indiana Code 2. How do I provide information on illegal gambling.