Two agencies carried out a raid at the Union Fork Bait and Tackle in Soddy Daisy on Friday.
Authorities said some gambling machines were removed from the location at 12169 Old Dayton Pike.
It is operated by the uncle of Soddy Daisy Commissioner Gene Shipley, but the commissioner is not involved.
The establishment sells fishing supplies and also has a tavern section.
The raid was by the Alcohol Beverage Commission (ABC) and the Hamilton County Sheriff's Office.
A Soddy Daisy officer was at the scene, but the city police did not take part in the raid.