Sportzino Exits Tennessee Following Regulator Crackdown

Third operator forced out in less than a year

Sportzino is the latest unlicensed operator to leave the state, following Legendz in April 2025 and Bovada in November 2024. All three faced regulatory pressure after SWC issued direct cease-and-desist orders, part of a coordinated campaign to eliminate unregulated sports betting operations.

The withdrawals are not symbolic. Together, they highlight a systematic effort by Tennessee authorities to narrow the market to licensed operators while reducing consumer exposure to offshore sportsbooks offering sweepstakes or chance-based games outside state rules.

Why Sportzino was targeted

Sportzino operated as a hybrid model, combining social casino-style games with free sports prediction contests. Its library included more than 1,000 slot-like titles, as well as sweepstakes promotions tied to sports. Regulators viewed this as a direct violation of state laws, which explicitly prohibit chance-based games such as poker, slots, or coin flips from being bundled with sports wagering products.

In addition, SWC identified other red flags typical of unlicensed operators: minimal age verification, the extension of credit to players, and the absence of state-mandated consumer safeguards such as segregated payout reserves or responsible gambling protocols.

Mary Beth Thomas, SWC’s Executive Director, emphasized the council’s position in a statement announcing the enforcement action:

“Offering sports wagering in Tennessee is a taxable privilege, and we’re exploring every tool available to us as regulators in our effort to shut down illegal sportsbooks. Licensed sportsbooks offer critical consumer protections that unlicensed operators do not, and we will continue to work with our law enforcement partners in this effort.”

The message reinforces SWC’s dual strategy: protecting consumer safety and safeguarding tax revenue. Licensed sportsbooks in Tennessee contribute to state coffers, while offshore operators avoid taxes altogether.

The Sportzino order is part of a broader crackdown that has already resulted in $600,000 in fines across 12 illegal operators, with $200,000 levied in July 2025 alone. Tennessee has been one of the more aggressive states in using financial penalties and legal threats to push offshore brands out of its market.

The regulator has repeatedly warned bettors that the availability of a website or app does not mean a sportsbook is legal. By limiting access to licensed platforms, the state aims to foster a safer, regulated betting environment backed by consumer protections and transparent oversight.