SWC Demands Illegal Sportsbooks Sportbet and FullStarSportbook to Cease Operations in Tennessee

NASHVILLE – On September 30, the Tennessee Sports Wagering Council (SWC) issued cease and desist demands to two additional unlicensed sportsbooks, Sportbet and FullStarSportsbook, demanding they shutter operations in Tennessee.

Sportbet and FullStarSportsbook are operating in Tennessee in violation of the Tennessee Sports Gaming Act, unlawfully accepting wagers without a license, and the sportsbooks have until October 30 to comply.

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 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 in Tennessee. 

“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,” SWC Executive Director Mary Beth Thomas said. “In stark contrast to our legal sportsbooks, illegal operators such as Sportbet and FullStarSportsbook choose to violate state and federal laws, do not offer any of the same consumer protections that licensed entities offer, and we will continue our work to eradicate these bad actors from the market.”

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-based wagers, such as the coin toss or the color of the Gatorade.

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, and 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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