FanDuel Sportsbook Launches With Legal Sports Betting in Tennessee
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Tennessee sports bettors, welcome to the club!
The Volunteer State officially launched legal online betting Sunday, November 1, and FanDuel Sportsbook opened its digital doors right way.
Originally a daily fantasy sports (DFS) operator that was founded in 2009, FanDuel in 2018 expanded to sports betting after the U.S. Supreme Court struck down PASPA, allowing states to legalize and regulate sports betting.
FanDuel in 2018 merged with Flutter Entertainment — then called Paddy Power Betfair — which is one of the biggest gaming companies in the world. They own a variety of sportsbooks across the globe, including FanDuel, Paddy Power, Betfair, FOX Bet, PokerStars and more.
They have legal, online betting in the following states currently:
Sports betting enthusiasts will certainly track the success of FanDuel and the other sportsbooks in Tennessee, which has some unique regulations. The Volunteer State has one of the larger tax rates among legal states, and its legislation requires a 10% hold from sportsbooks, which could create inflated odds (which will be worse for the consumer) compared to other states like Nevada or New Jersey.
Will bettors be willing to pay the high prices or will the current legislation discourage bettors from signing up in-state? Only time will tell, and notably Tennessee could change its rules down the road — it baked a clause into the bill that it can revisit its rules and regulations in 12 months.
FanDuel is already one of the biggest sportsbooks in the United States, as they’ve been aggressive expanding into legalized states early on. They already have a huge user base from DFS, which has allowed them to grow quickly following the PASPA ruling. We expect they’ll be one of the biggest players in the space for years to come.