The rise of illegal gambling in the state of Tennessee is forcing the Sports Wagering Council to seek government help as missing tax revenues force its hand.
Earlier this month, a group of 50 U.S. attorneys urged the Department of Justice to stop the spread of illegal gambling.
The bipartisan coalition of 50 attorney generals wrote to federal AG Pam Bondi to ask the DOJ to prioritise efforts to target unlawful online sports betting and gaming platforms that are considered illegal operators.
In addition, the American Gaming Association (AGA) President and CEO Bill Miller has also regularly contacted the DOJ and federal authorities to ask them to take a firmer hand.
Speaking to WKRN News 2, Mary Beth Thomas, Executive Director of the Tennessee Sports Wagering Council, summarised the developing situation and warned bettors about illegal sites. “If somebody chooses to use an illegal sportsbook, they are doing so at their own risk,” she said.
She went on to explain that many offshore companies operate under several different names and often use tactics to lure people in, with celebrity sponsorships and through social media for example.
However, with the state bringing in over $5.5bn a year, she revealed that 30% or more tax revenue is being lost due to people’s choices to bet with illegal operators.
Thomas said: “The majority of them are located overseas in islands, in places where we don’t have jurisdictional reach. We have $5.5 billion activity a year, 30% more of that could be captured if individuals were wagering on legal books.”
As a result, the council has been working to force operators out of the state, which recently resulted in the betting company Bovada being ordered to leave Tennessee with a cease and desist letter.
However, there are still major issues given that they haven’t been able to force entities to pay anything back or bring any real justice – which is why they are seeking stronger measures with help from the government.
“So far, we’ve had five entities that were offering illegal sports betting or illegal fantasy products leave the state, we have not had any entities pay yet but we are working closely with the attorney general’s office to turn those civil penalties into enforceable judgements.”
The latest measures granted by the state to fine unlicensed sportsbooks with the first offence being a $10,000 fine, the second a $15,000 fine, and the third fine going up to $25,000.
Plus, the council can fine unauthorized sportsbooks for $25,000 for each wager placed after that, which represents a tool for the state in the fight against illegal gambling.
