Tennessee Sports Betting 2020: Mobile Apps & Online Sites Only

Sports betting was legalized in Tennessee in the spring on 2019. On April 30th, 2019, the Tennessee legislature approved a sports betting bill. The bill became law without the governor’s signature. It allows for mobile and online betting only with no physical sportsbooks. Nearly a year after the passing of the bill, Tennessee has still yet to launch any legal sports betting sites.

Tennessee Sports Betting Rules

Sports betting in Tennessee is different than most other states in the country. Tennessee will only have mobile and online sports betting and no brick-and-mortar sportsbooks. The law went into effect on July 1st of 2019, but won’t launch in the state until October, 2020. The Tennessee Education Lottery Corp. is tasked with regulating the industry under the Tennessee Sports Gaming Act.

There is no restriction for who can apply for a mobile sports betting license. However, the $750,000 licensing fee will weed out a lot of smaller competitors. Aside from the high licensing fee, there is one aspect of legal sports betting that is getting a lot of criticism in Tennessee. A proposed rule requires sportsbooks cap payouts at 85 percent. The 15 percent hold is three times the average rate in the industry (5%).

If that wasn’t enough, Tennessee is one of three states that will require the use of “official league data” for live-betting, joining Michigan and Illinois. Add in a relatively high tax rate of 20 percent, and Tennessee has a number of issues to address before any launch can occur.

There is no cap on sports betting licenses in Tennessee. Anyone 21 or older will be eligible to place a bet. The only notable betting restriction is that in-play bets on collegiate events will not be allowed.

Tennessee Sports Betting Promo Codes (No Active Sportsbook Yet. These are Projected Values)

There are no mobile apps or online betting live yet. These promo codes are projected for Tennessee, but we won’t know the actual offer until each sportsbook launches. We will update this promo code table as soon as the sportsbooks go live in Tennessee.

TN Sportsbook Rank

Tennessee Sports Betting Apps (Expected)

Expected Launch Date

#1DraftKings Sportsbook TennesseeExpected October, 2020
#2FanDuel Sportsbook TennesseeExpected October, 2020
#3William Hill Sportsbook TennesseeExpected October, 2020
#4MGM Sportsbook TennesseeExpected October, 2020
#5PointsBet Sportsbook TennesseeExpected October, 2020

Tennessee Sportsbooks

We expect the Top 5 sportsbooks to launch in Tennessee. These books are Draftkings, FanDuel, William Hill, PointsBet, and MGM. We do not know for certain which books will enter the market aside from DraftKings & FanDuel. We know these two books will be live as soon as they are able. Tennessee is likely to be a top 20 state in terms of betting volume.

TN Sportsbook Rank

Tennessee Sports Betting Apps (Expected)

Expected Launch Date

#1DraftKings Sportsbook TennesseeExpected October, 2020
#2FanDuel Sportsbook TennesseeExpected October, 2020
#3William Hill Sportsbook TennesseeExpected October, 2020
#4MGM Sportsbook TennesseeExpected October, 2020
#5PointsBet Sportsbook TennesseeExpected October, 2020

Tennesee Betting Market

Tennessee is the 16th most populated state in the United States of America. We’ve seen similar-sized states such as Indiana and Colorado have great success upon launch. We expect the same for the Volunteer states. Here is a fact table on the betting market.

Tennessee Sports Market

Details

Tennesee Population6,829,174 (2019)
Estimated TN Market Size$4.5 billion
Largest Tennessee Betting City PopulationsNashville (673K)
Memphis (647K)
Knoxville (191K)
Chattanooga (184K)
Clarksville (164K)
Murfreesboro (151K)
Franklin (88K)
Jackson (66K)
Tennessee Profesional Sports TeamsTennessee Titans, Nashville Predators
Tennessee College Sports TeamsMemphis Tigers, Tennessee Volunteers, Vanderbilt Commodores
Tennessee Legislature Bill Approval DateApril 30th, 2019
Law Commencement DateJuly 1st, 2019
Sports Available to Bet OnNFL, NBA, MLB, NHL, Soccer, UFC, Tennis, Golf

Tennessee Sports Betting FAQ

Can I bet Legally on Sports in Tennessee?

Yes, you can bet legally on sports in Tennessee. On April 30th, 2019, the Tennessee Legislature voted to approve a sports betting bill. The bill became law without Tennessee Governor Bill Lee’s signature.

Tennessee Sports Betting History

A 45-day public comment period was held until January 6, 2020. The Tennessee Lottery released draft rules for the licensing and regulation of sports wagering. The comment period was to address any issues with those rules. During the comment period, more than 300 comments were made, and the 15 percent payout cap was one of the most talked-about issues. The Tennessee Lottery is using the comment made during the 45-day period to address and possible issues that were brought up.

According to gaming consultants Eilers and Krejcik, two-thirds of the sportsbooks polled would reconsider applying for a license in Tennessee became of the proposed payout cap. The 20 percent tax rate is the second-highest in the country behind Pennsylvania (36 percent). If the 85 percent payout cap remains, Tennessee may see a limited number of sportsbooks applying for a license. This would limit options for Tennessee bettors. Also, this could lead to bad pricing and products for Tennessee bettors. This could cause bettors to not only travel to other states to find reasonable betting lines but also keep them betting illegally via bookies or off-shore betting sites.

The use of “official league data” is another controversial aspect. With the margins for sportsbooks already thin, adding in extra costs on top of the high licensing fee and tax rate could potentially scare operators away. However, the law in Tennessee does allow for an exception if the leagues cannot provide the data under “commercially reasonable terms”.

Another issue that was addressed a lot was an odd one not seen anywhere else. A “parlay” is a wager made on multiple individual bets into one wager. Traditionally in a parlay, when one of the wagers results in a tie, the entire bet is not considered a loss. The payout on the bet is adjusted to exclude the leg of the parlay that resulted in a tie, making the rest of the bet still active. However, in Tennessee, one rule would require that the parlay be considered a loss in the event that even one leg results in a tie. This goes against any industry standards and is a huge disadvantage to bettors.

Major sports leagues have even voiced their concern over some of the proposed rules in Tennessee. DraftKings also voiced their concern over the parlay rule. Tennessee sees criticism from every angle. From local bettors to the leagues and even the companies who run the sportsbooks, they all seem to agree that Tennessee has a number of issues that need to be addressed before sports betting can launch.

When Will Sports Betting Launch in Tennessee?

An Oxford Economics Study suggests that the annual handle in Tennessee would be $4.5 billion. The biggest sports betting event of the year is the Super Bowl, and Tennessee is on track to be live well before then. The first licenses were just approved on 9/24/2020 and the sportsbook look poised to launch in October, 2020.

  
Calvin is a sports betting enthusiast that has been in the business for over 10 years. He has created successful betting formulas for seven different sports. way too serious Packers, Mets, and Avalanche fan that hates everything Pittsburgh, despite living there.