Tennessee Demands BetOnline Halt Unlicensed Betting Operations

The Tennessee Sports Wagering Council (SWC) has issued a cease and desist order to offshore sportsbook BetOnline, directing the operator to stop accepting bets in the state by June 16. The Panama-based company is accused of violating the Tennessee Sports Gaming Act by taking wagers without a valid state license.

This marks the second cease and desist notice BetOnline has received in less than a month, as state regulators intensify efforts to shut down illegal sports betting platforms and reinforce the legal market.

SWC Cracks Down on Illegal Operators

“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 SWC Executive Director Mary Beth 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.”

Tennessee, which has the largest online-only betting market in the U.S., has seen more than $4.8 billion wagered through licensed sportsbooks in the current fiscal year. The SWC is working to ensure that only approved operators participate in the market, providing a safer environment for consumers.

Financial Penalties for Non-Compliance

Under the state’s Sports Gaming Act, the SWC can fine operators $10,000 for a first offense of accepting bets without a license. Fines increase to $15,000 for a second offense and $25,000 for a third. Additional violations are subject to $25,000 per wager.

In recent months, the SWC has taken action against multiple offshore sportsbooks. In April and May, BUSR, BetUS, MyBookie, and Xbet were fined a total of $200,000. Last November, Bovada exited the Tennessee market following a $50,000 fine, though the operator failed to pay it. The SWC also issued cease and desist letters to Sportsbetting.ag and Lowvig in April.

Risks of Illegal Betting Platforms

Illegal sportsbooks are often identified by practices banned in Tennessee, such as offering credit betting, accepting cryptocurrency, or including casino-style games like slots and poker. Licensed operators, by contrast, are required to protect player funds, age (21+), and ensure personal data security.

Businesses in Tennessee that partner with illegal sportsbooks could also face criminal consequences, the SWC warns. Residents can consult tn.gov/swac to which sportsbooks are legally authorized to operate in the state.

BetOnline Also Targeted in Michigan

Tennessee isn’t the only state pursuing BetOnline. The Michigan Gaming Control Board (MGCB) also issued cease and desist orders to BetOnline and Sportsbetting.ag, citing violations of the Lawful Internet Gaming Act. The MGCB’s investigation, prompted by a tip, found BetOnline was offering unauthorized sports betting, casino games, and horse racing in Michigan.

These actions reflect a growing national effort by regulators to protect consumers and uphold state gaming laws.

Source:

“SWC Sends Cease and Desist Letter to Illegal Sportsbook BetOnline”, tn.gov, May 20, 2025