The Tennessee Sports Wagering Council (SWC) continues its aggressive campaign against the black market, announcing today that it has levied $50,000 fines against two offshore operators: BetDSI and BetNow.
With these latest penalties, the SWC has now assessed a total of $800,000 in fines against illegal gambling entities operating within the state.
The War on the Black Market
Tennessee has emerged as one of the most proactive regulatory bodies in the United States in its efforts to crack down on unlicensed sportsbooks accepting Tennessee clients. To date, the SWC has issued 24 cease-and-desist letters to illegal entities.
The strategy appears to be yielding results. According to the Council, seven illegal operators. including major offshore brands such as Bovada, Sportzino, BetWhale, and Kickr, have officially exited the Tennessee market in response to regulatory pressure.
Protecting a $5.6 Billion Market
As the largest “online-only” sports betting market in the U.S., Tennessee generates significant volume, recording $5.6 billion in wagers last fiscal year through licensed platforms. The SWC views the protection of this regulated capital as a primary mandate.
SWC Executive Director Mary Beth Thomas highlighted the stark contrast between legal and illegal markets, particularly regarding consumer protection and Responsible Gaming (RG) tools during the holiday season.
“December is typically a time when there is an uptick in patrons taking advantage of the responsible gaming tools legal sportsbooks are required to provide,” Thomas said. “Illegal sportsbook operators have no regard for responsible gaming efforts, let alone the law.”
Thomas also issued a stern warning regarding data privacy: “Anyone sports betting with an illegal sportsbook should know that they are sharing their personal and financial information with known criminals.”
Broader Industry Impact
The SWC highlighted the growing pressure on illegal operators from multiple fronts, praising external stakeholders for their efforts to clean up the area. It specifically commended YouTube’s recent removal of BetUS’s TV channel as an example of platforms enforcing stricter policies against unlicensed gambling.
You can find a full list of approved licensees and vendors authorized to operate in Tennessee here.