SWC Fines Illegal Sportsbook XBET $50,000
Bettors Encouraged to Withdraw Funds ImmediatelyNASHVILLE -- The Sports Wagering Council (SWC) issued $50,000 in fines to unlicensed offshore sportsbook Xbet for operating illegally in Tennessee.
Xbet failed to comply with a March cease and desist letter, and it is the fourth illegal operation fined by the SWC as the state agency continues its work to shut down illegal sportsbook operators in Tennessee.
Earlier this month the SWC issued $100,000 in fines to BetUs and MyBookie, and in November 2024 Bovada shut down after the SWC issued $50,000 in fines to the illegal offshore sportsbook.
“Our mission is to protect the public interest of Tennessee through a safe and regulated sports betting environment, and we will continue our work to eradicate these bad actors from the market,” SWC Executive Director Mary Beth Thomas said. “In stark contrast to our legal sportsbooks, illegal operators choose to violate state and federal law and do not offer any of the same consumer protections the law requires of licensed entities.”
Tennessee is the largest “online-only” sports betting market in the U.S., with more than $4.7 billion a year wagered in Tennessee through online sportsbooks licensed by the SWC.
The Sports Gaming Act authorizes the Council to impose a $10,000 fine for the first offense of accepting wagers without a license, which rises to $15,000 for the
second offense, and $25,000 for the third offense. Subsequent offenses may lead to the imposition of a $25,000 fine for each occurrence, with an occurrence being a single wager accepted in Tennessee.
Bettors can always go to tn.gov/swac for a list of approved licensees and vendors. Illegal sportsbooks can often be identified by these factors, all of which are illegal in Tennessee:
- Extending credit;
- Wagering with cryptocurrency; and
- Offering casino games, such as slots or online poker, or chance-based wagers, such as the coin toss or the color of the Gatorade.
Licensed online sportsbook operators provide important player protections not found in the illegal market, including protecting consumers, holding reserves to pay wagers and keeping personal information secure.
Licensed sportsbooks must also follow certain restrictions under state law, such as prohibiting individuals under 21 years old from wagering and refusing to allow wagering on credit.
About the Tennessee Sports Wagering Council
The Tennessee Sports Wagering Council’s primary role is to protect the public interest of Tennessee through a safe, regulated sports gambling environment. The SWC oversees the licensing and registration process for online sports wagering operators, sports wagering vendors, and fantasy sports operators. The state agency monitors and enforces compliance with the Tennessee Sports Gaming Act and the Tennessee Fantasy Sports Act and related rules, including the assessment of the State’s privilege tax on sportsbooks.
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