Tennessee Sports Betting Regulators Impose Fines on Two Sportsbooks

ZenSports’ Reserve Account Issue

ZenSports received a $60,000 fine, while Fanatics was fined $50,000 for self-reported violations related to the self-exclusion list.

The company was penalized for not maintaining an adequate reserve account balance to cover its outstanding bets in Tennessee.

Sportsbooks in the state are required to keep sufficient funds in reserve to meet their obligations to bettors. In December 2023, ZenSports was found to have fallen below this requirement on three occasions.

Fanatics’ Self-Exclusion List Violation

“Licensees also shall maintain a reserve in the form of cash, cash equivalents, irrevocable letter of credit, in addition to the above-referenced Bond, of not less than the amount necessary to ensure the ability to cover the outstanding liability related to the Patron accounts.

The outstanding liability shall be the sum of the following amounts: 1. Amounts held by the Licensee for Sports Gaming Patron Accounts; 2. Aggregate amounts accepted by the Licensee as Wagers on Sporting Events with outcomes that have not been determined; and 3. Amounts owed but unpaid by the Licensee on winning Wagers,” said a SWC spokesperson.

Fanatics was fined $50,000 for issues related to the self-exclusion list, which allows individuals to exclude themselves from gambling activities. The violation was self-reported.