Tennessee Fines Bovada $50,000 for Illegal Sportsbook Operations

Bovada, an unlicensed offshore sportsbook, for illegally accepting wagers in the state. Despite repeated warnings, Bovada has failed to comply with cease-and-desist orders, leading to this penalty. The Council’s executive director, Mary Beth Thomas, emphasized the importance of public protection through a regulated sports betting environment, encouraging Bovada s in Tennessee to withdraw their funds immediately.

Action Against Illegal Sportsbooks

The fine stems from Bovada’s failure to respond to cease-and-desist letters sent by the Council to its ed address in Curaçao. Investigators confirmed that the platform continued to operate unlawfully in Tennessee, with wagers placed as recently as October 16, 2024. This discovery prompted the Council to impose fines for multiple offenses, with $10,000 charged for the first violation, $15,000 for the second, and $25,000 for the third. Under the Sports Gaming Act, each individual wager accepted in Tennessee is considered a separate violation, allowing the Council to fine Bovada for each occurrence.

“The Sports Wagering Council recommends that Tennessee s of Bovada withdraw their funds immediately,” Thomas said. She explained that just because a sportsbook can be accessed from within the state’s borders does not mean it is legally licensed to operate there. Bovada’s failure to obtain a proper Tennessee license puts its s at financial risk, as unlicensed operators are not held to the same standards of consumer protection as legal sportsbooks.

Consumer Risks in Unregulated Markets

One of the key concerns highlighted by the Council is the vulnerability of bettors who use illegal sportsbooks like Bovada. These platforms lack crucial safeguards, such as the protection of personal and financial information, that are standard with legal operators. In some cases, funds deposited into an unlicensed sportsbook may be withheld indefinitely, leaving s with no way to recover their money.

Thomas reinforced the need for bettors to understand the dangers of engaging with offshore gambling platforms. “Legal sportsbook operators provide important bettor protections not found in the illegal market. If an individual wagers with unlicensed sportsbooks, their sensitive financial and personal information may not be protected and could even be shared with criminal enterprises,” she stated.

The Council has vowed to continue working with law enforcement agencies at both the state and federal levels to crack down on illegal operators like Bovada. This is part of an ongoing effort to protect Tennessee’s rapidly growing sports betting market, which saw over $4.7 billion wagered through licensed sportsbooks in the last fiscal year.

The Growing Issue of Illegal Gambling

The issue of illegal sportsbooks is not unique to Tennessee. Bovada, which is based offshore, has been the subject of cease-and-desist orders in multiple U.S. states, including including Massachusetts, where the Attorney General recently took similar measures against Bovada.

However, given Bovada’s international operations, it is unlikely that the $50,000 fine will be paid anytime soon. Bovada is headquartered thousands of miles away in Curaçao, making enforcement of Tennessee’s legal penalties a challenge. Nonetheless, the Tennessee Sports Wagering Council remains committed to eradicating illegal sportsbooks and ensuring that all online betting in the state is conducted through licensed, regulated platforms.

Source:

Sports Wagering Council Takes Action Against Illegal Sportsbook. tn.gov. October 23, 2024.