Tennessee Fines Illegal Sportsbooks $50,000 in Betting Crackdown

SWC Targets Rogue Operators

The Sports Wagering Council (SWC) in Tennessee dropped $50,000 fines each on Lowvig and Sportsbetting.ag, for running illegal sportsbooks.

The two offshore sites ignored April cease-and-desist letters, becoming the sixth and seventh operators penalized by the SWC. With over $5 billion wagered in Tennessee’s online-only betting market this fiscal year, the SWC is doubling down to protect bettors from unregulated platforms.

Lowvig and Sportsbetting.ag operate without Tennessee licenses, offering no consumer safeguards like those required of legal sportsbooks. “They’re handing their personal and financial info to criminals,” said SWC Executive Director Mary Beth Thomas, warning bettors about illegal sites.

These operators skirt state laws by extending credit, accepting cryptocurrency bets, and offering casino games like slots or poker, all banned in Tennessee’s regulated market.

The Cost of Breaking the Law

Under Tennessee’s Sports Gaming Act, the SWC can fine unlicensed operators $10,000 for a first offense, $15,000 for a second, and $25,000 for a third, with each wager counting as a separate violation.

Legal sportsbooks in Tennessee undergo rigorous vetting to ensure player safety, holding reserves to pay winnings and securing personal data.

They’re barred from letting anyone under 21 bet or wager on credit, unlike illegal operators. Thomas stressed that licensed platforms offer “consumer protections the law requires,” unlike offshore sites that expose bettors to fraud and data theft.