As one of the first southern states to legalize online sports betting, Tennessee is at the forefront in an area of the country that has been slower than most in adopting legal gambling options.
The state intends to also lead its Southern neighbors in going after gambling operators that skirt sports betting rules.
Tennessee recently fined five offshore sportsbooks $50,000 apiece for violating the state’s requirements, with Panama-based BetOnline the most notable platform, having received a cease-and-desist letter from gaming regulators in May.
State can issue $25K fine on each wager accepted
Along with BetOnline, four other offshore sportsbooks received fines for violating Tennessee sports betting regulations, according to Legal Sports Report:
- Bookmaker
- BetAnySports
- JazzSports
- EveryGame
The state determined the five were in violation of the Tennessee Sports Gaming Act, the law that made online betting legal in the Volunteer State in 2019.
Illegal offshore sportsbooks have been a persistent pain in the neck for Tennessee since online betting was rolled out in November 2020. Curacao-based Bovada, one of the nation’s most popular offshore books, ceased operations in the state after receiving a similar $50,000 fine from the Sports Wagering Council (SWC) in the past.
Per state regulations, once the SWC has established due cause of illegal operations, operators are subject to a $10,000 fine for the first infraction, $15,000 for the second, and $25,000 for the third. From there, the law permits the state to issue $25,000 fines for each bet accepted by an offshore book.
Businesses that aid operators can also be penalized
It’s not just the sportsbooks themselves that can find themselves in legal jeopardy, either. The Tennessee Sports Gaming Act also contains a provision for businesses that work with illegal offshore sportsbooks, making them also subject to civil or criminal penalties.
It’s been a slog for legal sports betting to gain a foothold in the south. Tennessee has become the blueprint in the region for how gambling can be expanded while protections for residents remain at the top of the priority list.
Tennessee gaming regulators’ action against the five offshore operators should highlight that point.
