Illegal Offshore Sportsbooks LOWVIG, Sportsbetting.AG Fined $50,000 Each By The SWC

NASHVILLE -- The Sports Wagering Council (SWC) fined illegal offshore sportsbooks Lowvig and Sportsbetting.ag $50,000 each for operating illegally in Tennessee after the entities failed to comply with cease and desist letters issued in April.

Sportsbetting.ag and Lowvig are the sixth and seventh illegal operations to be fined by the SWC as the state agency continues its work to shut down illegal sportsbook operators in Tennessee.

Eliminating illegal sportsbooks from Tennessee is a primary focus of the SWC with its mission to protect the public interest of Tennessee through a safe and regulated sports betting environment.

Additionally, any businesses in Tennessee working in conjunction with illegal offshore sportsbooks could face criminal penalties. Those interested can always go to tn.gov/swac for a list of licensees and vendors approved to do business here.

“Tennessee is the largest online-only sports betting market in the U.S. with more than $5 billion wagered in Tennessee so far this fiscal year, and licensed sportsbooks in Tennessee go through a rigorous process before they have the privilege to do business here,” SWC Executive Director Mary Beth Thomas said. “In contrast to our legal sportsbooks, illegal operators do not offer any of the same consumer protections the law requires of licensed entities, and if a consumer continues to do business with an illegal sportsbook, they are giving away their personal and financial information to criminals.”

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.

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-base 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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