FanDuel Tennessee: Legal Since a Governor Wouldn't Sign

FanDuel Tennessee: Legal, Online-Only Since 2020

FanDuel Tennessee has been a licensed sportsbook since November 1, 2020, in a state that got there in an unusual way: the legislature passed the bill in 2019, and Governor Bill Lee let it become law by simply not signing it. Tennessee is still one of the only states with zero retail sportsbooks and zero casinos of any kind — online betting is the entire legal market.

Legal status in Tennessee

Tennessee legalized mobile-only sports wagering in 2019 under a bill the General Assembly passed and Governor Bill Lee returned unsigned, allowing it to take effect without his signature. The Tennessee Education Lottery ran the market at its November 1, 2020 launch, with a one-of-a-kind rule requiring operators to hold at least 10% of total bets as revenue. The legislature created the Tennessee Sports Wagering Advisory Council (SWAC) in 2021, which took over regulation on January 1, 2022, and then repealed the minimum-hold rule effective July 1, 2023, replacing it with a flat 1.85% privilege tax on total handle — not revenue, the model nearly every other state uses. FanDuel operates under an SWAC license today, one of 12 online sportsbooks live in the state in 2026.

State gambling authority: Tennessee Sports Wagering Advisory Council (SWAC), which took over sports betting oversight from the Tennessee Education Lottery on January 1, 2022, and licenses every online operator in a state with no retail sportsbooks and no casinos, tribal or commercial.

FanDuel Tennessee has been a licensed sportsbook since November 1, 2020, but the law behind it took an unusual path to the books. The General Assembly passed the online-only betting bill in 2019, and Governor Bill Lee didn't sign it — he returned it unsigned, which under Tennessee procedure let it become law anyway. Tennessee is still one of only a handful of states with zero retail sportsbooks and zero casinos, tribal or commercial. Online is the whole market.

A Law the Governor Wouldn't Sign

Most states get a sports betting law from a governor's signature or a veto override. Tennessee got one from neither — Bill Lee let the 2019 bill take effect without putting his name on it, a quiet way of allowing a market he apparently had reservations about. The Tennessee Education Lottery stood up the regulatory side and the market opened statewide on November 1, 2020, with FanDuel and DraftKings among the first operators live.

Launched: November 1, 2020. Current regulator: Tennessee Sports Wagering Advisory Council (SWAC), since January 1, 2022. Retail sportsbooks or casinos in Tennessee: zero.

Zero Casinos, Zero Retail — By Design

Tennessee never built a retail sportsbook requirement into its law the way most states did, and it has no legal casino industry at all — no commercial licenses, no tribal gaming compacts. That makes a “FanDuel Casino Tennessee” search a non-starter nationally and locally: FanDuel Casino only exists in Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia, and even if it expanded further, Tennessee has no casino framework to plug it into.

From a 10% Hold to a 1.85% Handle Tax

Tennessee's original rule was genuinely unique: operators had to hold at least 10% of total bets as revenue, a floor no other state imposed. The Sports Wagering Advisory Council, which took over from the Lottery on January 1, 2022, repealed that requirement effective July 1, 2023, and replaced it with a flat 1.85% privilege tax on total handle — what's wagered, not what the operator keeps. It's a different tax base than the revenue-percentage model nearly every other legal state runs.

1.85% privilege tax on total handle, effective July 1, 2023. Splits: 80% to the Lottery for Education account, 15% to counties and local governments, 5% to mental health and problem-gambling programs.

Is FanDuel Legit in Tennessee?

Two things point the same way. First, FanDuel's daily fantasy product has run in Tennessee since the 2016 Fantasy Sports Act, well before the sportsbook existed, under its own statute. Second, in October 2026 FanDuel became the first sportsbook partner of the NBA's Memphis Grizzlies — the kind of in-state team deal a license-less operator doesn't get to sign. Twelve online sportsbooks hold SWAC licenses in 2026; FanDuel has been one of them since launch day.

How Safe Is FanDuel in Tennessee?

As safe as a regulated, online-only market gets: an SWAC license, geolocation that confirms a bettor is physically inside Tennessee, age verification at 21+, and the same oversight body that rewrote the state's tax structure once it decided the original hold rule wasn't working. There's no retail counter and no casino floor to visit here — the app is the entire regulated product.

Who It Fits

Adults 21+ physically located in Tennessee who want a licensed sportsbook app — there's no retail alternative and no casino product to pair it with, online or off. Gambling is entertainment, not income. If it stops feeling that way, 1-800-GAMBLER is free and confidential.

FanDuel Tennessee — Frequently Asked Questions

Is FanDuel legal in Tennessee?

Yes. FanDuel has held a Tennessee sports wagering license since the state's online-only market launched on November 1, 2020. The underlying law passed the General Assembly in 2019 and became effective after Governor Bill Lee returned it unsigned rather than vetoing or signing it.

Is FanDuel legit in Tennessee, or is this still the old hold-requirement system?

It's legit, and the system changed in 2023. Tennessee originally required every operator, FanDuel included, to hold at least 10% of total bets as revenue — a rule no other state had. The Sports Wagering Advisory Council repealed it effective July 1, 2023, replacing it with a flat 1.85% privilege tax on total handle. FanDuel's license carried over through that change without interruption.

Is FanDuel safe to use in Tennessee?

Yes. It operates under an SWAC license, the same regulator that licenses all 12 online sportsbooks currently live in the state, with geolocation confirming a bettor is physically in Tennessee at the time of the wager. SWAC also oversees age-21-plus verification and self-exclusion tools statewide.

Does FanDuel have an online casino in Tennessee?

No. FanDuel Casino operates in only five states nationally — Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia — and Tennessee has never legalized any casino gambling, commercial or tribal, online or in person. There's no FanDuel Casino to open here regardless of the sportsbook's size.

Why does Tennessee tax handle instead of revenue?

Because the legislature swapped systems in 2023. Most states tax an operator's gross gaming revenue, but Tennessee's 1.85% privilege tax applies to the total amount wagered, win or lose. Collections split 80% to the Lottery for Education account, 15% to counties and local governments, and 5% to mental health and problem-gambling programs.

When did FanDuel launch in Tennessee — sportsbook or DFS first?

Daily fantasy sports came first, under the 2016 Tennessee Fantasy Sports Act, three years before the sportsbook law existed. The regulated sportsbook launched statewide on November 1, 2020, with FanDuel among the first operators live alongside DraftKings.