Gambling
Tennessee Sports Wagering Council Issues $50K in Fines to Bovada
The Tennessee Sports Wagering Council through its executive director issued $50,000 in fines Tuesday to Bovada, an offshore sportsbook and iGaming platform, operating in the Volunteer State.
Bovada failed to comply with cease-and-desist letters, according to the Tennessee Sports Wagering Council
According to the news release, Bovada failed to comply with cease-and-desist letters delivered to addresses in Curaçao. Council investigators also placed wagers via Bovada’s platform on three separate occasions, including as recently as October 16, 2024.
The Sports Gaming Act authorizes the Council to impose a $10,000 fine for the first offense. The penalty rises to $15,000 for the second offense. Illegal operators can then be fined $25,000 for the third offense as well.
Subsequent offenses may lead to the imposition of a $25,000 fine for each occurrence. Of course, an occurrence counts as a single wager accepted by an illegal operator in Tennessee.
In the cease-and-desist letters, the Council ordered Bovada to allow all Tennessee users to withdraw any funds currently held by the unlicensed sportsbook.
Legal sportsbook operators provide better financial protection
“The Sports Wagering Council recommends that Tennessee users of Bovada withdraw their funds immediately,” said Mary Beth Thomas, Executive Director of Sports Wagering Council.
“Our primary role is the protection of the public interest through a safe, regulated environment. Tennessee sports bettors need to know that just because they can access a sports betting website or app inside Tennessee’s borders does not mean it is licensed to do business here.”
Legal sportsbook operators provide customer protections not found in the illegal market. If a bettor wagers with unlicensed sportsbooks, their financial and other personal information might not be protected.
The gambler’s money could be withheld or disappear without a way to recover it. The Sports Wagering Council is working with law enforcement at the state and federal level to ban illegal sportsbooks.
Tennessee is the largest “online-only” sports betting market in the U.S.
Furthermore, Tennessee is the largest “online-only” sports betting market in the U.S. More than $4.7 billion was wagered in the state last fiscal year via online sportsbooks licensed by the Council.
Licensed sportsbooks are required to protect consumers, including holding reserves to pay wagers and securing personal information. Legal operators also must prevent individuals under 21 years old from placing bets, and they have to prohibit wagering on credit.
A study commissioned by the American Gaming Association estimates that Americans wager nearly $64 billion annually with illegal online sportsbooks and bookies.