Tennessee is set to launch online sports betting on Nov. 1, becoming the only state without brick-and-mortar casinos to legalize online gambling.
What Happened: Four companies have been approved to launch online sports betting with conditional licenses, according to PlayTenn.
The companies are: FanDuel, owned by Flutter Entertainment (Pink: PDYPY); DraftKings Inc (NASDAQ: DKNG); BetMGM, a joint venture partially owned by MGM Resorts International (NYSE: MGM); and Action 24/7.
Three other companies applied for a license, but they have not been approved and there names have not been released.
Why It’s Important: Tennessee becomes the first of three states, with Michigan and Virginia being the others, expected to launch online sports betting by the end of the year. The three states represent 8% of the U.S. adult population.
Action Network’s Darren Rovell doesn’t expect Tennessee to put up huge numbers, but notes the state will be the only one in the Southeast with legalized online sports betting.
Rovell also said Tennessee is the closest legalized state to Georgia, Florida, North Carolina and South Carolina.
The four licensed companies are obtaining early entry into the state, with more rivals waiting to join the party.
PlayTenn said others like Caesars Entertainment (NASDAQ: CZR), Bet Rivers and FoxBet could apply.
Barstool Sportsbook, partially owned by Penn National Gaming (NASDAQ: PENN), could also launch in Tennessee in the future after its success in Pennsylvania.
What’s Next: Michigan and Virginia are expected to launch online sports betting by the end of 2020.
Louisiana, Maryland and South Dakota all have betting legislation on the 2020 presidential election ballot. Those three states represent 4% of the U.S. adult population.
DKNG Price Action: Shares of DraftKings lost 5.27% Friday, closing at $35.40. Shares have fallen 13% over the last five days.
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