Five offshore sportsbooks have been fined $50,000 each by Tennessee gaming regulators.
The penalties were issued to BetAnySports, BetOnline, Bookmaker, Everygame, and JazzSports, the Tennessee Sports Wagering Council announced this week.
BetOnline had been ordered in May to shutter its operations in Tennessee, while the other four platforms operated in the state without acquiring the proper licensing, regulators said.
Tennessee is one of several states that has stepped up enforcement of its gaming rules by targeting nefarious operators.
Clamping down
Tennessee launched sports betting in November 2020, roughly two years after it was legalized federally. With 12 licensed sportsbooks in operation, the executive director of the Tennessee Sports Wagering Council (SWC), Mary Beth Thomas, said the council is committed to protecting the integrity of its gaming market through any means possible.
“The SWC is exploring all avenues with its network of law enforcement to eliminate these bad actors from Tennessee. Consumers in Tennessee need to be aware that illegal operators will gladly take their money and personal information, and if a consumer does business with an illegal book, they give away their information to criminals.”
Part of protecting bettors from illegal operators means cracking down not just on the platforms but also on their partners. Payment processing companies, marketing agencies, and promotional affiliates could also be held civilly and criminally liable, regulators said.
The state’s actions against offshore sportsbooks started last October when the SWC issued a $50,000 fine to the parent company of popular platform Bovada, Harp Media B.V.
The SWC said when it sent the fine that it was collaborating with state and federal officials to remove unwanted operators from its market.
Tennessee’s regulators remained active in the following months, slapping $50,000 fines on BetUS, BUSR, MyBookie, and Xbet.
The state’s gaming laws enable the SWC to issue $10,000 fines for first-time offenders, $15,000 for second infractions, and $25,000 for the third violation and every time beyond. Regulators can impose a $25,000 fine on every single wager made through an operator in Tennessee.
Regulating the market
The SWC listed four factors that could help bettors determine if a sportsbook is unlicensed or offshore. Those include:
>The sportsbook offers lines of credit
>Cryptocurrency is an acceptable form of payment
>The platform allows patrons to play online casino games
>Available bets include those based on chance, not skill (like betting on how long the national anthem will take before a game)
In addition to the state’s fight against offshore sportsbooks, the state is one of several concerned by the rise of prediction platforms.
The SWC in April penned a letter to the Commodity Futures Trading Commission detailing its consternation over these platforms. The SWC claimed in the letter that those who offered sports event contracts essentially acted as unlicensed sports betting operators.
“The Tennessee Legislature has put in place many requirements of its sports betting licensees in order to protect those who choose to wager in our state. The CFTC regular entities currently offering these sports events contracts are not compliant with these protections (or many others) mandated by the Tennessee Legislature.”
Event contracts provide a projected probability and price associated with outcomes such as “Yes” or “No” to the Dallas Cowboys winning a Monday Night Football matchup against the Kansas City Chiefs.
Action has not been taken by the SWC against these platforms, which include Kalshi, crypto.com, Robinhood, and others.