Tennessee Regulator Imposes $111K in Fines on Two Bookies
The Tennessee Sports Wagering Council (SWC) has fined Fanatics Sportsbook and ZenSports for violating gaming regulations.
Tennessee fine two major sportsbook operators.
LISTEN TO THIS ARTICLE:The regulator penalized Fanatics Sportsbook with a $50,000 fine after it failed to prevent eight individuals on the self-exclusion list from placing bets on its platform.
Self-reporting the breach, Fanatics attributed the mistake to it's acquisition of PointsBet's US operations. When the operator launched In Tennessee, it inherited a statewide exclusion list and an in-house 20-state self-exclusion list. Although the bettors were no longer on the statewide list, they remained on the in-house record, which led to the oversight.
While Fanatics had rectified the coding issue and promptly refunded the affected accounts, it didn't stop the council from fining the operator $6,250 for each Level 2 breach, totaling $50,000. The decision was unsurprising since this would be the second time that Fanatics would be penalized for the same violation.
More Regulation News
KeyStar Fined over Insufficient Funds
KeyStar, which operates as ZenSports in the state, was handed a $60,000 penalty for not having sufficient funds in its reserve account to meet its financial obligations and debts.
Tennessee requires its gambling operators to maintain a sufficient amount in their reserve accounts to ensure the ability to cover outstanding liabilities related to their customers' accounts.
According to the rule, "The outstanding liability shall be the sum of the following amounts: 1. Amounts held by the Licensee for Sports Gaming Patron Accounts; 2. Aggregate amounts accepted by the Licensee as Wagers on Sporting Events with outcomes that have not been determined; and 3. Amounts owed but unpaid by the Licensee on winning Wagers."
The SWC discovered that ZenSports fell short of the required reserve balance on three occasions in December 2023.
ZenSports blamed the violation on an error in calculation by its accounting team. Since being informed of the issue, the company has maintained an adequate balance and appointed new members to its accounting department.
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