BetOnline received a new cease and desist letter from a state gaming regulator this week, marking the second letter the offshore operator has received in less than a month.
The Tennessee Sports Wagering Council (SWC) sent a cease and desist letter to BetOnline for allegedly operating an illegal offshore sportsbook in the state. The SWC considers BetOnline to be in violation of the Tennessee Sports Gaming Act, which prohibits operators from accepting wagers from customers in the state without a license.
BetOnline has been ordered to shutter operations in Tennessee by June 16.
“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,” said SWC Executive Director Mary Beth Thomas. “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.”
The SWC is set to impose penalties on BetOnline if the Panama-based operator fails to comply with the cease and desist order. The council, under the Sports Gaming Act, has the authority to levy a $10,000 fine on BetOnline for its first offense of accepting wagers without a license. The SWC can fine BetOnline $15,000 for a second offense. A third instance of accepting wagers without proper licensing calls for a $25,000 fine.
Any additional offenses are subject to a $25,000 fine for each violation. Each violation can include a single wager that is accepted in Tennessee without a state-issued license.
Last November, the SWC fined offshore operator Bovada $50,000 resulting in it exiting Tennessee’s gaming market. The council also recently fined four offshore operators BUSR, BetUS, MyBookie and Xbet a collective $200,000. In addition to BetOnline, the SWC has also sent cease and desist letters to offshore sportsbooks Sportsbetting.ag and Lowvig.
While Bovada left the state, it did not pay the fine.
BetOnline ordered to exit Michigan
The Michigan Gaming Control Board (MGCB) sent BetOnline, along with Sportsbetting.ag, a series of cease and desist orders for conducting illegal gambling in the state. The MGCB believes the offshore operators are violating Michigan’s Lawful Internet Gaming Act by accepting wagers from customers in the state without a license.
The regulator initiated an investigation into BetOnline’s business practices following an anonymous tip. The probe claimed BetOnline’s sports betting, online casino, and horse racing offerings were illegal.
