Tennessee Tells BetOnline to Exit Over Unlicensed Sports Betting
The Tennessee Sports Wagering Council (SWC) has issued a cease and desist order to offshore sportsbook BetOnline, directing the operator to stop accepting bets from Tennessee residents by June 16. The Panama-based company is accused of violating the Tennessee Sports Gaming Act by operating without a state-issued license.
This marks the second time in under a month that BetOnline has been warned by regulators, underscoring growing regulatory pressure on offshore betting sites across the U.S.
State Regulators Increase Pressure on Unlicensed Operators
Tennessee's SWC has made cracking down on unauthorized sportsbooks a key enforcement priority. Executive Director Mary Beth Thomas emphasized that protecting the legal market and consumers from unregulated platforms remains central to the Council’s mission.
“Shuttering illegal sportsbooks will benefit the legalized market, our licensed operators and the public good in Tennessee, but illegal offshore sportsbooks are not going to go away easily,” said Thomas. “We envision a Tennessee where all sports wagers are legal, and we’re working closely with our network of law enforcement at the state and federal levels to make that vision a reality.”
Fines Could Escalate Rapidly
Noncompliance with the order could bring significant financial consequences for BetOnline. Under SWC rules, fines begin at $10,000 for a first offense, increasing to $15,000 for a second and $25,000 for a third. Beyond that, each additional illegal wager could incur a penalty of $25,000.
The SWC has already taken similar enforcement actions this year. Between April and May, offshore platforms including BUSR, BetUS, MyBookie, and Xbet were collectively fined $200,000. In 2023, Bovada withdrew from the Tennessee market after receiving a $50,000 fine—though the company did not pay. Other unlicensed platforms, such as Sportsbetting.ag and Lowvig have also been served with cease and desist orders.
Ensuring Safety in a $4.8 Billion Market
Tennessee's legal betting industry has seen more than $4.8 billion in wagers this fiscal year, reinforcing the importance of safeguarding the regulated ecosystem. Licensed sportsbooks are held to strict requirements around security, responsible gambling, and identity verification.
Unlicensed operators, on the other hand, often circumvent these regulations by offering credit-based bets, accepting crypto, or including prohibited features like casino-style games and novelty props.
In addition, the SWC has warned that in-state entities doing business with illegal operators could face criminal consequences. Bettors and businesses are advised to consult tn.gov/swac to verify which platforms are legally authorized in Tennessee.
BetOnline Under Scrutiny in Multiple States
Tennessee isn’t alone in its actions against BetOnline. The Michigan Gaming Control Board has also issued a cease and desist letter to the company following a tip that it was unlawfully targeting Michigan players with sports betting, casino games, and horse racing options. These parallel actions point to a coordinated effort by state regulators to crack down on offshore gambling activity and protect their jurisdictions’ legal frameworks.
Source:
Tennessee Warns BetOnline to Exit Over Illegal Sports Wagering, lcb.org, May 26, 2025.