The state of Tennessee now has nine online/mobile sportsbooks approved for gambling.
On Tuesday, Penn Sports Interactive, which is behind the Barstool Sportsbook, and Wagr, a so-called social sports betting platform backed by a Reddit co-founder, were added to the license list.
No respective launch dates for the platforms have been announced, but they will likely come during the upcoming NFL season. The Tennessee Titans are expected to be a contending team.
Both books will have their work cut out for them trying to capture market share from the likes of FanDuel, DraftKings, and BetMGM, which control the bulk of the more than $1.5 billion wagered in the state since Nov. 1, 2020, the date that legal betting began.
What exactly is Wagr?
Wagr is eyeing a slightly unique product, looking at a vertical that resembles peer-to-peer wagering. A true peer-to-peer wagering sportsbook called ZenSports has its license pending in Tennessee, but it will offer traditional sports betting while regulators still examine that form of betting.
Under a recent law change, regulatory duties shifted from the Tennessee Education Lottery to a nine-member panel, which is currently finalizing its own regulations for online gambling.
“It’s about productizing what already goes down in everyone’s group chat, which is wagers between friends about sporting outcomes,” Ohanian told me in a phone interview.
Wagr has pending license applications in Tennessee and Virginia.
Link here: https://t.co/lLaXJ2iHXF
— Bailey Lipschultz (@BTLipschultz) June 16, 2021
Tennessee will be Wagr’s first state, while Barstool is already live in seven states.
In order to obtain and maintain a sports betting license in Tennessee, operators must pay $750,000 annually, in addition to a 20% tax on adjusted winnings. There are no retail sportsbooks in the state.
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