Tennessee is ramping up its efforts to stamp out illegal sports betting, slapping $50,000 fines on offshore operators Lowvig and Sportsbetting.ag for continuing to target state residents despite cease-and-desist orders issued in April. The fines mark the sixth and seventh penalties handed out by the Sports Wagering Council (SWC) as part of its aggressive campaign to clean up the local betting landscape.
SWC Warns of Harsh Consequences
The SWC reiterated its commitment to protecting consumers and ensuring a regulated market, stressing that any Tennessee-based businesses aiding these offshore sites could face criminal charges. Under the Sports Gaming Act, penalties for unlicensed betting begin at $10,000 and can climb to $25,000 per violation—with each illegal wager counted individually.
Executive Director Mary Beth Thomas underscored the risks, noting that offshore sites bypass crucial safeguards and expose users to fraud. “Illegal sportsbooks offer no consumer protections. When people bet with them, they’re handing over personal and financial details to criminals,” Thomas said.
New Rules Tighten the Screws
Alongside enforcement, the SWC is introducing tougher regulations set to take effect June 30. The changes include stricter identity verification through multi-factor authentication, expanded responsible gaming definitions, tighter rules on wager cancellations, and revised standards for marketing and KYC processes.
State’s Online-Only Market Draws Scrutiny
Tennessee, the largest online-only sports betting market in the U.S., has already seen over $5 billion in wagers this fiscal year. But that popularity also makes it a target for unauthorized operators. Offshore books often flout state law by extending credit, taking crypto, or offering casino-style games—all activities banned under Tennessee regulations.
Broad Campaign Continues
Since March, the SWC has issued over $250,000 in fines to unlicensed operators, including BetUS, MyBookie, and Xbet. BetOnline was recently added to the list of sites ordered to cease operations in the state.
Tennessee’s crackdown aligns with similar moves in states like Michigan as regulators across the U.S. try to push back against an estimated $64 billion illegal betting market. Though enforcement is challenging—offshore sites regularly change domains and processors to dodge detection—there are signs the pressure is working. Bovada, for example, has already exited the Tennessee market voluntarily.
Tennessee’s strategy may become a model for others looking to reclaim control of their sports betting markets—and the tax dollars that come with them.
