Tennessee Sports Betting Regulator Continues to Push Out Offshore Operators

The Volunteer State isn’t done fighting offshore sportsbooks just yet.

The Tennessee Sports Wagering Council (SWC) regulates the state’s sports betting industry and has issued a cease-and-desist letter to BetOnline. The offshore sportsbook has operated in the state for years, but now must exit on or before June 16. Failure to do so will result in further legal action, likely led by the federal government.

BetOnline has yet to publicly respond to the demand.

SWC Continues Fight Against Unregulated Sportsbooks

The SWC’s letter to BetOnline is just the latest move in a wider battle against unregulated sportsbook operators in the state. The regulator has already assessed BUST, BetUS, My Bookie, and Xbet fines. They also forced Bovada to exit the market and sent C&D letters to Sportsbetting.ag and Lwvig

The goal is to protect both bettors and the state’s tax revenue generated from the industry.

“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. 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,” a statement from the SWC read.

Prediction Markets Also Targeted

Tennessee isn’t stopping its effort to protect its regulated sports betting market from offshore sportsbooks. The SWC is also taking action against the emerging sports prediction markets industry. 

While the regulator and state don’t have the power to shut down these controversial markets, they requested the Commodity Futures Trading Commission (CFTC) to take action. They sent a letter to the federal regulator, accusing sports prediction markets of offering illegal gambling.

Tennessee is one of many states that have taken action against these markets, but the CFTC has yet to respond.

Are Offshore Operators Out of Time in the US?

Tennessee is the second state to boot BetOnline in the last month. Michigan issued a similar cease-and-desist letter earlier in May to kick out 40 illegal operators.

US states are limited in their power to enforce cease-and-desist letters to international operators, but that hasn’t stopped offshore books from complying. The risk of the US Justice Department becoming involved is too great for both operators and many of the countries they call home.