On July 15, 2025, the Tennessee Sports Wagering Council (SWC) fined five offshore sportsbooks $250,000 for operating without a license. Each operator—BetAnySports, Bookmaker, JazzSports, BetOnline, and Everygame—received a $50,000 penalty. The SWC, which oversees the state’s online-only sports betting, claims these companies broke the Tennessee Sports Gaming Act by accepting bets illegally.
Tennessee legalized online sports betting in November 2020, and created the Sports Gaming Act in order to combat unregulated activity that circumvents the legalization statutes in place. Under the Act, fines start at $10,000 for a first offense, $15,000 for a second, and $25,000 for a third. Fines can reach $25,000 per wager for repeated violations.
The SWC has now issued $600,000 in total fines against illegal operators.
The SWC is cracking down to protect Tennessee’s sports betting market, the largest online-only market in the U.S., with $4.8 billion wagered this fiscal year. Past actions include a $50,000 fine to Bovada, which stopped operating in Tennessee in October 2024. The SWC also sent a cease-and-desist letter to Legendz, which shut down in April 2025.
BetOnline, one of the fined operators, had received a cease-and-desist letter in May 2025, ordering it to halt operations by June 16. Its failure to comply led to the recent penalty. The SWC is now pursuing further legal action, including requesting the Tennessee Attorney General’s Office to convert fines into enforceable judgments against operators’ assets.
This approach aims to strengthen enforcement against offshore entities, which often operate beyond U.S. jurisdiction.
Tennessee is taking a strong stand against illegal gambling in the South by having the SWC work with state and federal law enforcement to stop unlicensed operators and ensure a fair and safe betting market.
SWC Executive Director Mary Beth Thomas said, “We’re doing everything we can to remove these bad actors from Tennessee.”
Efforts are also driven by the state’s reliance on the revenue earned from regulated gaming, which is used to improve local schools, infrastructure, and other long-term investments.
The SWC recently raised concerns about sports prediction markets like Kalshi, which let users bet on event outcomes. Tennessee considers these markets illegal wagering and has asked the Commodity Futures Trading Commission to block them, but Kalshi’s model has seen federal support that could protect it from action.
Illegal sportsbooks pose significant risks to Tennessee consumers. Unlike licensed operators, these offshore platforms do not adhere to state regulations, such as legal age verification or prohibiting credit-based wagering. They often allow bets using cryptocurrency, offer casino games like slots or poker, or accept wagers on chance-based events, all of which are prohibited in Tennessee.
Thomas emphasized that these operators “gladly take consumers’ money and personal information,” potentially exposing bettors to fraud or data theft.
The SWC advises consumers to use only licensed sportsbooks, which are listed on tn.gov/swac. The council also noted that businesses in Tennessee collaborating with unlicensed sportsbooks could face civil or criminal penalties.
