Bovada hit in Tennessee with $50,000 fines

The TennesseeSports Wagering Council has targeted Bovada, a prominent sportsbook and gaming operator that has been offering its products to state residents without authorization.

In a statement shared by the regulator, the Curacao-based company is said to have failed to comply with cease-and-desist letters that were sent to the platform. To affirm that there was indeed a breach of law, investigators for the Tennessee Sports Wagering Council successfully placed wagers at the platform on October 16, 2024.

Bovada accumulates fines up to $50,000 in TN

A total of $50,000 in fines has been issued to Bovada.lv, with the regulator arguing that the fines have been accrued, as follows: $10,000 for the first offense, $15,000 for the second offense, and $25,000 for the third offense.

Any subsequent offense may lead to the imposition of an additional $25,000. The regulator has insisted that Bovada.lv allow any state resident to withdraw their funds held at the sportsbook or the casino and shutter operations, urging players from the state to act promptly as well. Commenting on the case, the watchdog added:

"The Sports Wagering Council recommends that Tennessee users of Bovada withdraw their funds immediately. Our primary role is the protection of the public interest through a safe, regulated environment, and Tennessee sports bettors need to know that just because they can access a sports betting website or app inside Tennessee’s borders does not mean it is licensed to do business here."

The Council reminded sports bettors in its address that the only betting options in the state are those provided by regulated sportsbooks. The regulator similarly cautioned residents that by registering and playing at unlicensed gambling sites, they are sharing sensitive information, and that those same platforms may fail to protect them when it comes to responsible gambling.

Furthermore, a player’s funds may disappear without any protection or means of recuperating them, the regulator insisted in its statement.

The Council similarly reminded state residents that it is the largest Internet-only sports betting state in the country, having amassed $4.7bn in total wagers in the last fiscal year, and as such state residents have a thriving ecosystem of sports bets to explore instead.

Tennessee is not the only state to go after Bovada

Bovada has been pressured on multiple fronts in the United States, with more regulators raising an alarm over the company’s "unauthorized gambling," and asking it to leave.

Bovada has acknowledged these requests, based on a quick glance of its terms and conditions which generally exclude any jurisdiction that has issued a cease-and-desist letter to the operator.

Similar cases have been pursued in Massachusetts, where the Massachusetts Attorney General’s Office has ordered the company to cease operations. The company also faced pressure in Pennsylvania, Kansas, and Louisiana, along with Ohio.

Overall, Bovada is restricted in more than 15 jurisdictions in the United States presently, with more likely to follow suit.

Image credit: Unsplash.com