Offshore Sportsbooks Face Financial Penalties by Tennessee Sports Betting Regulatory Body
Hey there! Here's the lowdown on the Tennessee Sports Wagering Council (SWC) busting two unsavory offshore sportsbooks, BetUS and MyBookie, for flouting the law and betting illegally in the Volunteer State. Some folks should haul their cash out of either these shady operators for their own good.
The SWC Slaps BetUS and MyBookie with $100K Fine
The SWC shook things up real good, dumping a cool $50,000 in fines on BetUS and MyBookie for not ditching their unlawful shenanigans after getting served with cease-and-desist letters. Remember when the offshore sportsbook Bovada scarpered from Tennessee after the SWC hit them with a $50,000 fine back in November? Bovada's also out of commission in Delaware, Maryland, Nevada, and New Jersey.
SWC Executive Director Mary Beth Thomas chime in, "Instead of playing by the rules, these crooked operators break state and federal laws. They don't hit pause for minors, lend dough to desperate folks, or disclose their game plans with players' personal and financial data after logging in to their illegal sportsbook. We can't save gamblers who get into hot water with these sketchy sites, other than keeping up the good work to shut 'em down."
The Sports Gaming Act: The SWC's Enforcement tool
The Sports Gaming Act arm the Council with some serious regulatory muscle. For starters, they can kick off a $10,000 fine for a first offense of accepting wagers without a license, which ups to $15,000 for a second offense and hits $25,000 for a third offense. Repeat offenses could see the SWC dishing out $25,000 for each new wager accepted in the state, with each new wager treated as an individual case.
According to the SWC, it's as easy as pie to spot unlicensed sportsbooks - look for ones that accept bets with cryptocurrency, extend credit, and offer casino games like slots and poker.
SWC Stands Against Sports Prediction Markets
This news comes hot on the heels of the SWC sending a letter to the federal Commodity Futures Trading Commission (CFTC) requesting they keep sports event contracts out of Tennessee. Illinois, Maryland, Montana, Nevada, New Jersey, and Ohio have already sent cease-and-desist letters to trading platforms like Kalshi and Robinhood. Michigan's currently probing such markets, too.
In a two-page epistle to CFTC Acting Chair Caroline Pham, the Tennessee Sports Wagering Council called out 13 alleged violations of state laws and regulations from these prediction markets. They yakked about the numerous protections enacted by the Tennessee legislators to safeguard gamblers, such as:
- banning minors from placing wagers in Tennessee
- outlining lists of people or categories ineligible to wager
- requiring responsible gaming measures, like self-exclusion
- outlawing the use of credit cards and cryptocurrency to fund accounts
- banning kiosks for account creation or access
- enforcing specific anti-money laundering controls
- banning wagers on injuries, penalties, or college athlete actions along with in-game prop bets on college teams
The SWC concluded, "Anybody taking a bet on a sports event sans a valid SWC license treads on the wrong side of the Sports Gaming Act."
- The Tennessee Sports Wagering Council (SWC) has imposed a combined $100,000 fine on BetUS and MyBookie for continuing their illegitimate sports betting activities in Tennessee.
- A similar fate previously befell Bovada, which was fined $50,000 by the SWC and has since ceased operations in Tennessee, as well as in Delaware, Maryland, Nevada, and New Jersey.
- SWC Executive Director Mary Beth Thomas emphasized that these unscrupulous operators disregard state and federal laws, neglecting to halt activities post cease-and-desist letters, and failure to adhere to player data protection norms.
- The Sports Gaming Act provides the Council with the authority to levy fines, ranging from $10,000 to $25,000, in addition to penalties for repeat offenses and each new wager accepted.
- To detect unlicensed sportsbooks, the SWC advises looking for platforms that facilitate crypto transactions, extend credit, and offer casino games like slots and poker.
- The SWC recently sent a request to the federal Commodity Futures Trading Commission (CFTC) to prohibit sports event contracts in Tennessee, similar to Illinois, Maryland, Montana, Nevada, New Jersey, Ohio, and Michigan.
- The SWC has identified 13 potential violations committed by sports prediction markets, citing inappropriate practices such as allowing minors to place bets, using credit cards and cryptocurrency, and engaging in prop bets on college teams and player actions.
