Tennessee greenlights FanDuel, DraftKings, BetMGM for sports betting

Four companies have been approved to start sportsbook style online betting in Tennessee within a week. FanDuel, DraftKings, BetMGM and Tennessee Action 24/7 have all been approved to launch sites.

Tennessee legalized online sports gambling last year. The Tennessee Lottery board was charged with creating the rules for the new program. "We continue to eye November 1 as a “go-live” date for operators to begin taking wagers," said Dave Smith, Communications Director for the Tennessee Education Lottery Corporation.

Sports betting analyst Brian Pempus said he believes it will bring visitors to the state. "I think you're going to see people traveling into Tennessee from Alabama, Georgia. If you live close to those border town, maybe you'll see those license plates come over to a local bar or restaurant," said Pempus, as reported by WTVF.

A 90% payout cap rate was among the decisions reached by the lottery for Tennessee's online betting program. The amount is controversial because some believe it will make Tennessee less competitive with other state's online gambling rules. The payout cap means the gambling companies have to hold 10% of winnings.

Tennessee state law permits wagering on sporting events via the internet, mobile device or other telecommunications platforms. A customer must be at least 21 years old to play and physically located in Tennessee at the time a wager is placed.