The Sports Wagering Council (SWC) is cracking down on unlicensed sports betting operations in Tennessee, and their latest target is the illegal offshore sportsbook BetOnline. In a cease-and-desist letter, the SWC has given BetOnline until June 16 to halt its Tennessee operations. These operations are said to be in violation of the Tennessee Sports Gaming Act for accepting bets without the necessary license. This information was detailed in a recent announcement, which states that any businesses in Tennessee supporting such sportsbooks could also face legal repercussions.
Protecting the public through a safe betting environment is a central mission of the SWC, and its recent activity reinforces this. Over the past two months, $200,000 in fines have been issued to a handful of illegal sportsbooks, including BUSR, BetUS, MyBookie, and Xbet. Additionally, in November 2024, an offshore bookmaker known as Bovada was pushed out of the Tennessee market after being fined $50,000 by the SWC. According to the SWC's statement, "Shuttering illegal sportsbooks will benefit the legalized market, our licensed operators and the public good in Tennessee, but illegal offshore sportsbooks are not going to go away easily," SWC Executive Director Mary Beth Thomas said.
Tennessee boasts the largest "online-only" sports betting market in the United States, with more than $4.8 billion wagered this fiscal year through online sportsbooks licensed by the SWC. The Sports Gaming Act allows the council to levy fines ranging from $10,000 to $25,000 for unauthorized wagering, and these penalties can increase with each subsequent offense. Illegitimate sportsbooks in the state often engage in activities prohibited by Tennessee law, such as offering extensions of credit, accepting cryptocurrency bets, and providing casino-style games and chance-based bets.
