Tennessee is one state in the growing list of states that has restricted Bovada from operating. Tennessee has issued a $50K fine against Bovada as of last October, but now, it has made good on its promise to ban Bovada outright.

The list of US states barring access to Bovada, the popular offshore sportsbook, continues to grow, with Tennessee becoming the latest jurisdiction to sever ties with the operator. The Tennessee Sports Wagering Council (TSWC) announced on Thursday that the sportsbook has officially ceased its operations in the state's sports betting market. As proof of the change, the sportsbook's website now lists Tennessee among the 16 state markets where its services are restricted.

In a statement, Chairman Billy Orgel of the TSWC emphasized the significance of Bovada's departure: "Our licensed sportsbook operators provide important consumer protections not found in the illegal market, and the closure of Bovada's virtual doors in Tennessee is an important step toward the eradication of unlicensed, illegal sportsbooks in Tennessee. One of the Council's primary roles is the protection of the public interest through a safe, regulated environment, and our staff will continue to work closely with our network of law enforcement at the state and federal level to eliminate illegal sports betting."

Tennessee's sports betting action with Bovada takes a nosedive

Earlier this year, Tennessee regulators took action against Bovada by sending a cease-and-desist letter, which serves to demonstrate the state's zero-tolerance approach toward illegal sports betting operations. The TSWC additionally imposed a $50,000 fine on Bovada as a punitive measure. In response to these regulatory pressures, Bovada notified its Tennessee users on Tuesday that all sports betting accounts in the state would be closed.

The TSWC pointed out that offshore sportsbooks like Bovada lack fundamental consumer protections. The Council warned that unlicensed platforms are unable to safeguard users' financial and personal information, posing considerable risks to bettors. According to the TSWC, this shutdown is part of a larger effort to educate the public about the importance of licensed, regulated sportsbooks that ensure greater security and transparency.

An increasing list of restricted states

Tennessee's action comes as part of a broader wave of states targeting Bovada and similar illegal operators. Earlier in the year, Michigan initiated a significant movement to curb the influence of offshore sportsbooks by enforcing regulatory measures against Bovada. In turn, Massachusetts followed suit when its attorney general issued a cease-and-desist order, resulting in Bovada's exit from the state.

As a result, Bovada has now restricted access in a total of 16 states, including: Colorado, Connecticut, Delaware, District of Columbia (DC), Kansas, Louisiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, Ohio, Pennsylvania, Tennessee, and West Virginia. These states collectively contribute to a growing coalition committed to curbing illegal sports betting and prioritizing regulated sports wagering options.

Sports betting fight against offshore platforms gains momentum

The ongoing crackdown on Bovada highlights the larger issue of offshore sports betting within the United States. The American Gaming Association, for example, estimates that Americans wager nearly $64 million per year with illegal sportsbooks, revealing the scale of this unregulated sector. Moreover, just before the NFL season kicked off, the IRS estimated that the value of the illegal sports betting market hovers around $700 million.

Efforts to address this issue have extended beyond individual states. The AGA, alongside multiple state regulators, has called for federal intervention to help restrict illegal sportsbooks. These appeals reflect a widespread concern over the risks posed by unregulated betting platforms, not only in terms of lost tax revenue but also for consumer protection.

Consumer safety takes center stage

The closure of Bovada's Tennessee operations shows a fundamental issue at the heart of the offshore sports betting debate: consumer safety. Regulated sportsbooks are held to the most stringent security standards to protect users' financial and personal information, providing assurances that illegal operators cannot offer. The TSWC and similar regulatory bodies are determined to continue their efforts to combat illegal sportsbooks and maintain the integrity of legal sports betting markets.