NASHVILLE — The Sports Wagering Council (SWC) issued a cease and desist letter to illegal offshore sportsbook BetOnline demanding it shut down operations in Tennessee.

BetOnline is operating within the borders of Tennessee in violation of the Tennessee Sports Gaming Act unlawfully accepting wagers without a license, and the sportsbook has until June 16 to comply.

Eliminating illegal sportsbooks from Tennessee is a primary focus of the SWC with its mission to protect the public interest through a safe and regulated sports betting environment.

During April and May, the SWC has issued $200,000 total in fines to BUSR, BetUS, MyBookie, and Xbet, and in November 2024 the illegal offshore book Bovada shut down in Tennessee after the SWC issued it $50,000 in fines. In April, the SWC issued cease and desist letters to illegal offshore sportsbooks Sportsbetting.ag and Lowvig.

Additionally, any businesses in Tennessee working in conjunction with illegal offshore sportsbooks could face criminal penalties. Those interested can always go to tn.gov/swac for a list of licensees and vendors approved to do business in Tennessee.

“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,” SWC Executive Director Mary Beth Thomas said. “We envision a Tennessee where all sports wager 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.”

Tennessee is the largest “online-only” sports betting market in the U.S. with more than $4.8 billion wagered to date this fiscal year through online sportsbooks licensed by the SWC.

The Sports Gaming Act authorizes the Council to impose a $10,000 fine for the first offense of accepting wagers without a license, which rises to $15,000 for the second offense, and $25,000 for the third offense. Subsequent offenses may lead to the imposition of a $25,000 fine for each occurrence, with an occurrence being a single wager accepted in Tennessee.

Illegal sportsbooks can often be identified by these factors, all of which are illegal in Tennessee:

–    Extending credit;

–    Wagering with cryptocurrency; and

–    Offering casino games, such as slots or online poker, or chance-based wagers, such as the coin toss or the color of the Gatorade.

Licensed online sportsbook operators provide important player protections not found in the illegal market, including protecting consumers, holding reserves to pay wagers and keeping personal information secure.

Licensed sportsbooks must also follow certain restrictions under state law, such as prohibiting individuals under 21 years old from wagering and refusing to allow wagering on credit.