The Tennessee Sports Wagering Council has sent a cease and desist warning to BetOnline, an illegal sportsbook operator based overseas. BetOnline is in violation of the Tennessee Sports Gaming Act because it accepts wagers with no license, according to the SWC.

The Tennessee Sports Wagering Council has taken decisive action against offshore sportsbook operator BetOnline, issuing a cease and desist letter demanding the site halt all operations within the state by June 16. The move marks a continued crackdown on illegal sports betting platforms, as the Council seeks to protect the integrity and legality of Tennessee's booming online sports wagering market.

Illegal operations spark regulatory action

BetOnline has been operating in Tennessee without a license, violating the Tennessee Sports Gaming Act. The Act mandates that all sportsbooks accepting wagers from Tennessee residents must be licensed and regulated by the SWC. In response, the Council has ordered BetOnline to cease accepting bets in the state and is urging all Tennessee-based bettors to immediately withdraw any funds held in accounts with the illegal operator.

"Shuttering illegal sportsbooks will benefit the legalized market, our licensed operators, and the public good in Tennessee," said Mary Beth Thomas, Executive Director of the SWC. "Illegal offshore sportsbooks are not going to go away easily, but we envision a Tennessee where all sports wagers are legal."

Ongoing enforcement and fines

The action against BetOnline is part of a broader campaign by the SWC to clean up the state's sports betting landscape. Over the past two months, the Council has levied a total of $200,000 in fines against offshore operators such as BetUS, BUSR, Xbet, and MyBookie. In November 2024, Bovada - a major offshore sportsbook - shut down operations in Tennessee after receiving a $50,000 fine.

In April alone, cease and desist letters were also issued to Lowvig and Sportsbetting.ag, two additional offshore entities found to be unlawfully taking bets from Tennessee residents.

Harsh penalties for repeat offenders

Under the Tennessee Sports Gaming Act, the SWC is authorized to impose fines escalating with each offense. The first offense for accepting bets without a license carries a $10,000 fine, increasing to $15,000 for a second offense and $25,000 for a third. Beyond that, each individual wager can be penalized at $25,000 per instance.

Businesses based in Tennessee that are found to be facilitating or working with illegal offshore sportsbooks could also face criminal penalties, further demonstrating the seriousness of the state's commitment to eradicating unlicensed operators.

Spotting illegal sportsbooks

The SWC warns consumers to be on the lookout for telltale signs of illegal sportsbooks, which include:

  • Offering wagers using cryptocurrency
  • Extending lines of credit to bettors
  • Providing casino-style games such as slots, online poker, or chance-based wagers like coin tosses or prop bets unrelated to skill

These features are strictly prohibited under Tennessee law. In contrast, licensed operators in the state are bound by consumer protection regulations, including the requirement to safeguard user funds and personal information, prohibit underage betting, and disallow credit-based wagering.

A growing legal market

Tennessee remains the largest 'online-only' sports betting market in the United States, with over $4.8 billion wagered during the current fiscal year through state-licensed sportsbooks. The SWC continues to work closely with state and federal law enforcement to bring offenders to justice and uphold the standards of Tennessee's legal betting industry. For a complete list of approved vendors and operators, residents are encouraged to visit tn.gov/swac.

The Tennessee Sports Wagering Council is the state's primary regulatory body for online sports betting. Its mission is to protect the public interest by ensuring a fair, secure, and legal wagering environment. The Council oversees licensing, enforces compliance, and administers privilege taxes on licensed operators under both the Tennessee Fantasy Sports Act and the Tennessee Sports Gaming Act.