Online sports gambling will go live in Tennessee at 12:01 a.m. central standard time on Sunday, Nov. 1, 2020. Here's what to expect.
Starting Sunday, all bets are on for sports gambling enthusiasts in Tennessee.
Tennessee's online-only sports gaming program is unlike any other in the nation, experts say, and its launch is more than a year in the making. Online sports gaming became legal in the state, which has no brick-and-mortar gambling venues, on July 1, 2019. Tennessee Education Lottery Corporation regulators approved sports betting rules in April.
The state's first four licensed sportsbooks — Action 24/7, BetMGM, DraftKings and FanDuel — are slated to go live online and on apps for mobile devices Sunday at 12:01 a.m. Central time, in the heart of the NFL season and just before the 2020 Masters Tournament begins on Nov. 12.
Tennessee is the first state to regulate online sportsbooks directly, without the framework of casinos or possession of a retail gambling license as a precondition to operate a sportsbook online, a common qualifier in the 18 other states where betting is legal.
Licensed sportsbooks in Tennessee must also abide by a 90% cap on payouts — an unprecedented move in the United States and something several experts deem an anomaly.
What does this mean for Tennessee sports bettors? Here's what we know.
The rules of the game
Apps and online platforms of the four currently licensed sportsbook operators will go live on Sunday.
Bettors who are over the age of 21 and within the physical boundaries of the state of Tennessee will then be able to place their wagers via the internet using a mobile device or computer. Sportsbooks are barred from creating any type of physical kiosk or service station for consumer use in placing bets.
The Tennessee Education Lottery Corporation has approved more than 100 events across 27 sports for sports wagering.
Bettors can wager on collegiate sports in Tennessee, with limitations: no in-game proposition wagers can be placed on "individual actions, events, statistics, occurrences or non-occurrences" during a college game, according to Tennessee regulations.
Tennessee is the eighth state where FanDuel offers mobile sports betting (the company also offers retail sportsbooks in eight states). Founded in 2009, FanDuel is known as a national leader in daily fantasy sports games.
Those who already have a fantasy sports account with FanDuel can use the same account for the platform's online sportsbook starting Sunday, and winnings from fantasy sports and sports betting are stored in the same wallet, meaning they can be used interchangeably.
Tennessee users will see the same app that is available in other states served by FanDuel, featuring a wide variety of wager types, FanDuel CMO Mike Raffensperger said.
FanDuel also allows users to combine bets within the same game using a same-game parlay feature, and has an in-app sporting event livestream.
DraftKingsDraftKings is another national giant in daily fantasy sports, having accumulated about 13 million users across its offerings since its start in Boston eight years ago.
Tennessee is DraftKings' ninth market for sportsbooks — another step toward the company's goal of becoming the nation's largest sports gaming brand, DraftKings President Matt Kalish said.
DraftKings users in Tennessee will access the same app and online platform as users in other states, though options will be tailored to comply with Tennessee regulations.
Like FanDuel, those with a DraftKings account can access both daily fantasy sports and online sportsbooks with the same shared wallet, meaning funds can be used for wagers on both platforms.
BetMGMTennessee marks the eighth sportsbook for BetMGM, a joint venture between MGM Resorts International and GVC Holdings. The company, also known for its casino and poker services (which are not offered in Tennessee) launched its first sportsbook in New Jersey in 2018, and intends to grow its national footprint.
BetMGM announced a partnership with the Tennessee Titans in late September, and will be featured on Titans digital platforms, including during key in-game moments.
BetMGM's platform will offer Tennessee bettors a wide range of wager options, including pre-game, in-play wagers and future bets, BetMGM CEO Adam Greenblatt said.
The BetMGM app also carries some unique features, including the option to automatically cash out some bets once their value reaches a certain dollar amount set by the user, and the opportunity to earn M life reward points that can be redeemed for experiences in MGM resort properties or additional gameplay.
Action 24/7Action 24/7 is Tennessee's first local online sportsbook — also a first in the national sports gambling industry. The Nashville-based company is led by Tina Hodges, who also owns Advance Financial, an online lending company that operates in 15 states. Action 24/7 is backed by more than 50 investors from throughout the state.
Because Action 24/7 is a startup, users will need to wait until Sunday to make their first deposits once the platform goes live. Hodges said Action 24/7 will offer a variety of Tennessee-specific parlays (bets that include multiple wagers), and the company looks forward to attending tailgates and holding in-person events to meet the community once the COVID-19 pandemic is under control.
Unlike its larger national competitors, Hodges said Action 24/7 plans to focus only on operating in Tennessee, at least for now.
What to expect from promotionsA barrage of promotions will come with the launch of sportsbooks in Tennessee, including sign-up bonuses, free bets, deposit matches and odds boosts, among others. Consumers can expect to see a veritable flood of advertisements in the coming months.
Action 24/7 is offering a $51 registration bonus that goes live on Sunday, with more promotions and free bets running daily throughout November.
BetMGM will offer a risk-free $500 bet for new customers, meaning if a customer loses their first bet, the company will refund it up to $500. The platform also features a variety of deposit-match, odds boosts and other promotions on a rolling basis.
DraftKings offers new users who pre-download the app and register an account before Sunday a $50 free bet on opening day. Once Tennessee sports gambling goes live, new users in the DraftKings sportsbook are eligible for a welcome bonus up to $1,000, which releases in increments as users play on the platform over time.
FanDuel will offer a $50 bonus for those who register with the sportsbook prior to Sunday, and a risk-free first bet that will be refunded if a customer loses their first wager, up to $1,000. FanDuel will also offer sizeable odds boosts on some wagers for hometown teams with its Hometown Heroes promotions.
Tennessee's unique online-only sportsbook structure and first-of-its-kind 10% hold requirement mean sports wagering might look slightly different for Tennessee bettors, though several experts say these factors likely won't have a significant impact on the experience of casual bettors.
The state requires gambling operators to hold at least 10% of the money accepted in wagers, which could increase how much money the house takes for itself from bettors' winnings. This means bettors will have a maximum 90% payout, about 5% less than the industry average.
Jessica Welman, an analyst for sports gambling site PlayTenn.com, said this means sportsbooks in Tennessee will likely have to include a slightly higher cost to book bets in Tennessee to meet the hold requirement.
"I think only a small percentage of very avid bettors are going to really notice the pricing discrepancy, if there is one," Welman said.
Raffensperger, of FanDuel, said its platform broadly seeks to "keep the experience the same" across its sportsbooks in different states. Kalish, of DraftKings, said his company aims to give consumers the "best possible experience within the regulations," and hopes to keep odds "as similar as possible to other states, wherever possible."
BetMGM will offer a variety of parlay wager options to help the company meet the 10% hold, Greenblatt said. Parlays are bets that include multiple wagers and can have higher payouts, but also typically have less favorable odds for consumers.
For Hodges, of Action 24/7, any differences are moot.
"It's interesting because people talk about differences, but for Tennessee bettors, there's no difference," she said. "There's only one way being offered in Tennessee. It's like, I don't try to compare the milk prices in Nashville to the milk prices in Iowa, because no one in Nashville is buying milk in Iowa."
https://www.tennessean.com/story/money/industries/2020/11/01/tennessee-online-sports-betting-projections-millions-revenue/6056585002/