Tennessee Prepares for Sports Betting Launch on November 1Published October 19, 2020 by Elana K
FanDuel, BetMGM, and DraftKings have been granted conditional sports betting licenses. The companies are slated to receive final approval in time for the state’s projected sports betting launch date of November 1.
Licenses for FanDuel, BetMGM, and DraftKings to offer sports betting in Tennessee have been conditionally approved. The companies are slated to receive final approval in time for the state’s projected sports betting launch date of November 1. At the same time, Tennessee’s Sports Wagering Committee is still accepting additional applications.
Tennessee’s Unique Sports Betting Regulations
Tennessee passed legislation to legalize sports betting in May 2019, but lawmakers were slow to move forward. Its legislation is unique in 3 ways. First, it will be the first state to offer multiple online sportsbooks that are not connected to any land-based gaming facilities.
Second, it’s the first state to offer an unlimited number of possible applicants. On the one hand, this means that the market has the potential to be saturated with sportsbooks. On the other hand, the annual fee of $750,000 and gross gaming revenue tax of 20% might be off-putting for smaller companies.
The third way in which Tennessee regulations are unique is that it’s the only state that requires sportsbooks to maintain a minimum 10% hold. The traditional sportsbook hold is between 5% and 7%, which makes Tennessee's requirement a bit high. Practically, this may result in sportsbooks restricting the types of bets offered to make sure they meet their revenue requirements.
BetMGM Partners with Tennessee Titans
The 3 sportsbooks that have received conditional approval — FanDuel, BetMGM, and DraftKings — are expected to become revenue leaders despite the open market. However, BetMGM may have a decided edge over the others, since it was announced last week that the Tennessee Titans have chosen the sportsbook to be its Official Sports Betting Partner.
"The Titans are an incredible organization and we're proud to have BetMGM as the team's first official sports betting partner," said BetMGM Chief Marketing Officer Matt Prevost.
This is another first — the first official partnership between a sports betting platform and a professional sports team.