Tennessee Regulator Sets Sights on BetOnline Sportsbook

BetOnline’s run in the Volunteer State is coming to an end.

The Tennessee Sports Wagering Council (SWC) has sent a cease-and-desist letter to another offshore sportsbook. The state’s sports betting regulator demands that BetOnline stop accepting bets from customers within the state. The letter sets a deadline of June 16 for the operator to comply or risk further legal action.

The state has been pushing to shut down unregulated offshore operators. These operators have existed in the US for a long time, but states like Tennessee are beginning to crack down on the market to protect their regulated markets and residents.

“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.” read a statement from SWC Executive Director Mary Beth Thomas.

This is the second state to issue a C&D letter to BetOnline. Michigan also targeted the operator as part of a larger effort to end unregulated sports betting.

Are Prediction Markets Next?

Offshore sportsbooks aren’t the only targets the SWC has set its sights on. The regulator is also targeting sports prediction markets. These controversial trading platforms allow customers to buy “contracts” for teams or players to win an event. Since prediction markets are considered to be trading and not gambling, they can operate across the US.

Early lawsuits over these markets have established that states cannot force these operators out. Only the Commodity Futures Trading Commission (CFTC) has the power to regulate these markets, but it has yet to take any decisive action.

The SWC sent a letter to the CFTC a few weeks ago, asking that they order prediction market operators to shut down in the state. The letter accuses these operators of offering unlicensed sports betting, putting residents at higher risk while contributing no tax revenue to the state.