Caesars Sportsbook is facing scrutiny in Tennessee after two compliance failures resulted in $4,314.45 in fines. One case involved a self-excluded user who managed to open another betting account, while the other concerned prohibited college player props. The Tennessee Sports Wagering Council approved both settlements during its October 6 meeting. Council members also raised concerns about whether sportsbooks are doing enough to prevent mistakes that could be avoided with stronger internal oversight.
The more concerning violation involved a Caesars users who had voluntarily excluded themselves from gambling for six months in January 2026. Despite that restriction, the user attempted to create another account in February using a different email address, phone number, and Social Security number.
Caesars’ automated identity verification system initially rejected the application. However, an employee manually approved the account after confirming that the Social Security number was valid without checking whether it matched the user’s name.
That mistake allowed the individual to gamble despite their existing self-exclusion. The user deposited approximately $3,000, placed 83 wagers and withdrew winnings before the violation was addressed. Caesars agreed to pay a $3,000 fine.
The incident raises questions about how sportsbooks handle manual account reviews. Although Caesars had technology in place to identify suspicious registrations, the employee’s approval bypassed that protection.
The second violation involved betting markets that should not have been available to Tennessee users. During a review connected to Caesars’ license renewal, regulators discovered that the sportsbook had offered player proposition bets on NCAA baseball.
After the issue was brought to its attention, Caesars identified similar prohibited markets involving college volleyball. Tennessee does not allow sportsbooks to offer individual college player props, making those wagers a violation of the state’s betting regulations.
The investigation identified 118 wagers with a combined handle of approximately $4,900. Caesars agreed to pay a $1,314.45 penalty. To prevent similar problems, Caesars restricted the number of employees authorized to modify betting markets in individual states.
Although both settlements were approved, council members expressed concerns about whether relatively small fines provide enough incentive for operators to make sure this doesn’t happen again.
In their meeting on Oct. 6, Council Chairman Billy Orgel questioned why established sportsbooks continue experiencing preventable violations despite having access to technology designed to enforce rules in each state.
Council member Hanes Torbett also raised concerns about the resources required to investigate violations that ultimately result in minor penalties. Torbett suggested introducing escalating flat fines for repeated violations attributed to employee mistakes.
However, the council did not approve any changes to its penalty structure during the meeting.
Tennessee isn’t the only jurisdiction taking action against sports betting operators over compliance failures. In September, the Pennsylvania Gaming Control Board approved separate settlements involving MGM Resorts International and CountR GmbH.
MGM received a $50,250 fine for failing to submit a required licensing application on time. CountR agreed to pay $50,000 over an unapproved change of control and unpaid licensing fees.
Canadian regulators have also taken enforcement action. Ontario’s Alcohol and Gaming Commission recently issued a $200,000 penalty against theScore Bet over misleading cash-out offers.
While the violations differ, the cases demonstrate how gambling regulators are taking a proactive approach to ensuring that operators are living up to compliance standards.
