The Tennessee Sports Wagering Council (SWC) has issued $100,000 in fines to two unlicensed offshore sportsbooks, BetUS and MyBookie, for illegally operating in the Volunteer State. Gamblers in Tennessee who have funds with either offshore operator should withdraw those funds immediately.
Tennessee Sports Wagering Council Issued $50,000 Fines To BetUS, MyBookie
The SWC issued fines totaling $50,000 each to BetUS and MyBookie after the sportsbooks failed to comply with cease-and-desist letters. In November, the offshore sportsbook Bovada shut down operations in Tennessee after the SWC levied a $50,000 fine. Bovada is also unavailable in Delaware, Maryland, Nevada, and New Jersey.
“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,” said SWC Executive Director Mary Beth Thomas.
“They do not restrict minors from accessing their site, they often extend credit to vulnerable individuals, and players have no way of knowing where and with whom their personal and financial data is shared after they log in to an illegal sportsbook. We cannot help players who get into a dispute with an offshore sportsbook, other than to continue our work to shut them down.”
The Sports Gaming Act authorizes the Council to impose a $10,000 fine for the first offense of accepting wagers without a license, which then increases to $15,000 for the second offense, and $25,000 for the third offense.
Subsequent offenses may lead to the imposition of a $25,000 fine for each occurrence, with an occurrence being a single wager accepted in Tennessee.
According to the SWC, unlicensed sportsbooks can be identified by the following factors: allowing bets to be placed with cryptocurrency, extending credit, and offering wagers on casino games, such as slots or online poker.
SWC Opposes Sports Prediction Markets In Tennessee
This news also comes days after the SWC sent the Commodity Futures Trading Commission (CFTC) a letter asking the federal agency to “not permit” the offering of sports event contracts in the Volunteer State.
Illinois, Maryland, Montana, Nevada, New Jersey, and Ohio already sent cease-and-desist letters to trading platforms Kalshi and Robinhood. Michigan also launched investigations into such markets earlier this month.
In its two-page letter addressed to CFTC Acting Chair Caroline Pham, the Tennessee Sports Wagering Council cites 13 alleged violations of state laws and regulations from prediction markets.
The agency cited the “many requirements of its sports betting Licensees in order to protect those who choose to wager in our state” that were enacted by Tennessee legislators.
Those include:
- Individuals under the age of 21 not being permitted to wager in Tennessee
- Lists of persons or categories ineligible to place wagers
- Responsible gambling requirements that include self-exclusion
- Prevents the use of credit cards and cryptocurrency to fund accounts
- Regulations that do not permit kiosks for establishing or accessing accounts
- Laws and regulations that contain specific anti-money laundering controls
- Wagering on injuries, penalties, or actions of college athletes along with in-game prop bets on college teams
The SWC went on to state, “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.”
Jose is an iGaming analyst with wide experience within the sector. He has been working as content writer on casino and betting websites for more than 10 years, contributing on websites like Pokerlistings, Casinobee, Betpack among others, sharing his insights and perspective for the future ofthe iGaming market.
