Tennessee Sports Wagering Council Fines Two Offshore Sportsbooks
The Tennessee Sports Wagering Council (SWC) has taken decisive action against unlicensed offshore sportsbooks, imposing a total of $100,000 in fines on BetUS and MyBookie for their illegal operations within the state. This move underscores the importance of adhering to local regulations, as gamblers in Tennessee are urged to withdraw funds from these offshore operators immediately.
SWC Imposes Fines for Non-Compliance
The SWC has levied $50,000 fines against BetUS and MyBookie, attributing these sanctions to their refusal to comply with cease-and-desist orders. Notably, this is not the first instance of such penalties; in November, Bovada similarly ceased operations in Tennessee after facing a $50,000 fine from the SWC. Bovada is also prohibited in several other states, including Delaware, Maryland, Nevada, and New Jersey.
Mary Beth Thomas, Executive Director of the SWC, emphasized the risks associated with illegal sportsbooks, stating, “In stark contrast to our legal sportsbooks, illegal operators are choosing to violate our state and federal law. They do not offer any of the same consumer protection mechanisms that the law requires of licensed entities.” This lack of oversight leaves players vulnerable, exposing them to potential data breaches and financial risks.
Regulatory Framework and Penalties
The state’s Sports Gaming Act empowers the SWC to impose escalating fines for repeated offenses. The penalties are structured as follows:
- First Offense: $10,000 fine
- Second Offense: $15,000 fine
- Third Offense: $25,000 fine
- Subsequent Offenses: $25,000 fine for each occurrence, defined as accepting a single wager in Tennessee.
The SWC has identified several key indicators of unlicensed sportsbooks, including the acceptance of cryptocurrency bets, the extension of credit, and the offering of casino games such as slots and online poker.
Opposition to Sports Prediction Markets
In additional regulatory news, the SWC has recently communicated with the Commodity Futures Trading Commission (CFTC), urging the federal agency to disallow the introduction of sports prediction markets in Tennessee. States including Illinois, Maryland, Montana, Nevada, New Jersey, and Ohio have already issued cease-and-desist letters to trading platforms like Kalshi and Robinhood, while Michigan is currently investigating these markets.
In a detailed letter addressed to CFTC Acting Chair Caroline Pham, the SWC highlighted 13 alleged violations of state laws associated with prediction markets. The letter reinforces the necessity for strict compliance by sports betting licensees to protect bettors in the state. Among the critical regulations outlined are:
- Prohibition of wagering by individuals under 21
- Protocols for managing ineligible wagering categories
- Responsible gambling initiatives, including self-exclusion options
- Restrictions against using credit cards and cryptocurrency for account funding
- Regulations preventing the establishment of kiosks for account management
- Anti-money laundering controls specific to wagering operations
- Limitations on betting related to college sports, including injuries and in-game prop bets
The SWC stressed, “A person or entity that accepts a sum of money risked on the outcome of a sporting event without a valid license issued by the SWC violates the [Sports Gaming] Act.”
Conclusion
The actions taken by the Tennessee Sports Wagering Council serve as a clear message about the importance of regulatory compliance in the gambling industry. Legal sportsbooks contribute to safer gambling environments by implementing essential consumer protections that illegal operators neglect. As states continue to evolve their gambling regulations, it is crucial for consumers to engage only with licensed operators to ensure a secure betting experience.
About the Author
Jose Del Pozo is an iGaming analyst with over ten years of experience in the sector. He specializes in content creation for casino and betting websites, having contributed to recognized platforms such as Pokerlistings, Casinobee, and Betpack. His insights provide a forward-looking perspective on the rapidly evolving iGaming market.
