Tennessee Sports Wagering Council advised Bovada users to withdraw their funds as soon as possible
The Tennessee Sports Wagering Council has issued a fine to Bovada, arguing that its operations violate the local rules. Bovada, which is one of the biggest offshore operators in the USA, has been facing a variety of setbacks amid strong pushback from state regulators.
The Company Will Have to Pay $50K for the Violations
As mentioned, the Tennessee regulator issued a fine to Bovada, asking it to pay $50,000 for its illegal operations. The council also issued a cease-and-desist letter to a Curaçao address, asking the operator to allow consumers to withdraw their funds before it stops its illegal operation in the state.
Since no response was received, the Tennessee Sports Wagering Council advised Bovada users to withdraw their funds as soon as possible.
The fine was issued after investigators confirmed that Bovada does indeed accept bets from players in the state. For context, the authority can impose a fine of $10,000 on companies that accept bets illegally. This fine increases to $15,000 upon a second offense, and to $25,000 upon a third offense.
Additionally, the Tennessee Sports Gaming Act allows the council to fine $25,000 per occurrence.
Mary Beth Thomas, executive director of the Tennessee Sports Wagering Council, noted that the council’s main role is to make sure the public is protected by ensuring a safe gaming and betting environment for the players. Thomas added that players, however, should remain vigilant and understand that just because they can access a sports betting website or app doesn’t mean it is legal.
The council further warned that players who engage with unlicensed companies risk losing all their money.
Regulators Push Back against Bovada
Bovada has been facing regulatory pushback for a while now. Despite presenting itself as a legitimate operator, the company lacks licenses in many of the jurisdictions where its products are available.
The battle against Bovada was led by Michigan, which was among the first to send a cease-and-desist letter to the gambling operator’s parent company, Harp Media. Other state regulators followed suit, issuing similar letters to the operator.
As a result, Bovada has now added over a dozen states and Washington DC to the list of jurisdictions where it has been restricted.
Massachusetts was one of the latest US states to take action against Bovada.
