NASHVILLE, Tenn. (WKRN) — Sports betting in Tennessee has become so popular that the most recent state data shows that between July 1-31, more than $305 million was wagered online. However, not every online sportsbook is legitimate.

Mary Beth Thomas serves as executive director at the Tennessee Sports Wagering Council. She was appointed in 2021 and manages a 20 person team. Their goal is to make sure sportsbooks are in compliance with state law and catch those companies operating illegally in Tennessee.

"If someone is doing business with an illegal sportsbook, they are doing so with their own risk," Thomas said. "To answer your question on where they are located, the majority of them are located overseas on the islands, in places we do not have a jurisdictional reach."

According to the sports wagering council, there are 12 licensed sportsbooks in Tennessee. Many offshore, illegal sportsbooks operate under several different names. Unlicensed sportsbooks account for 30% of the missing tax revenue owed to the state of Tennessee.

"If we have $5.5 billion of wagering activity a year, 30% or more of that could be captured if individuals were wagering on legal books," Thomas explained.

Thomas believes many players don't even know they're wagering on unlicensed sportsbooks. She explained how these companies use tactics that make their websites look legitimate. Some of the ways include luring customers through social media, mailings and celebrity sponsorships

Working to stop these companies from operating in Tennessee is considered a major victory. She spoke on how Bovada voluntarily agreed to leave the Volunteer State and no longer accept wagers.

"So far we have had five entities that were offering illegal sports betting or illegal sports betting products leave the state," Thomas told News 2. "We have not had any pay yet, but we are working closely with the attorney general's office to turn those civil penalties into enforceable judgements."

The Tennessee Sports Wagering Council is working with federal partners to hold overseas sportsbooks accountable for illegally operating. Officials added the Sports Gaming Act authorizes the council to impose a $10,000 fine for the first offense of accepting wagers without a license, which then rises to $15,000 for the second offense, and increases to $25,000 for the third offense.

To learn more about the Tennessee Sports Wagering Council, follow this link.

News Source : https://www.wkrn.com/special-reports/tennessee-sports-wagering-council-continues-to-target-unlicensed-sportsbooks/