Scheduled to open before the end of the year, the new sportsbook will serve as a temporary facility, with a permanent retail location set to launch in spring next year.
The opening of both the temporary and permanent sportsbooks are subject to approval from the New Jersey Division of Gaming Enforcement.
FanDuel already has an online sports betting presence in New Jersey through its sub-licensing agreement with Meadowlands.
“The FanDuel sportsbook is the clear market leader in New Jersey and we are excited to expand our retail footprint in the state to now include Atlantic City,” FanDuel chief executive Matt King said.
“We are excited to get started and be a key piece in Twin River Worldwide Holdings transformation of the iconic Bally’s Atlantic City Hotel and Casino.”