Tennessee Regulators Bust Barstool, Hard Rock for Rules Violations

Similar to athletes in the sports they report on, sports betting providers must adhere to the rules. Two prominent sports betting websites have been identified for violating these regulations.

On Wednesday, Tennessee regulators announced fines for both Barstool and Hard Rock for breaking rules related to their sports betting operations.

The Tennessee Sports Wagering Advisory Council has once again flexed its regulatory muscle by imposing fines on several sports betting providers for failing to meet a 10% hold on gross revenues. Barstool, BetMGM, Betly, Caesars Underscoreg, DraftKings, SuperBook, Wagr, WynnBET, and Tennessee Action 24/7 were each fined $25,000 in 2026. The SWAC continues to be one of the most active regulatory bodies in the country when it comes to enforcing compliance among sports betting providers.

The Tennessee incident serves as a recent example for sportsbook providers operating in the U.S. market to be cautious. Increased scrutiny on betting sites, especially the top sportsbooks, is gaining momentum. This means that their advertising practices and daily operations will be closely examined in the future.

The Barstool Underscoreg violation

Barstool_G was penalized $92,000 by the SWAC for taking illegal prop bets on college football games, a violation of Tennessee sports betting regulations.

During the 2026 college football season, users in Tennessee were able to place 184 prop bets totaling $12,957.37 using the Barstool Underscoreg app. The bets were made between Sept. 22 and Nov. 19 and were initially attributed to the company’s transition from Kambi technology on the wagering platform.

According to SWAC Information Technology Auditor Travis Moody, the violations were not intentional and were overlooked during a transitional period. However, Moody emphasized that Barstool is accountable for monitoring its internal controls and operations, regardless of the circumstances.

Hard Rock’s misdeeds

Hard Rock Underage Tennessee was fined $70,000 by the SWAC for violating Tennessee’s sports betting regulations, specifically for illegal deposit practices on two occasions.

The committee discovered five instances where customers used their credit cards to fund their sports betting accounts. It was revealed that such deposits are currently not allowed under Tennessee law, leading to a $60,000 loss for Hard Rock due to this oversight.

Additional research uncovered problems with the geolocation technology used by Hard Rock TN.

In one instance, an investigator successfully accessed his Tennessee account even though the technology indicated he was located in Mississippi. Additionally, there were instances where Hard Rock customers were able to deposit funds into their Tennessee accounts despite not being physically present in the state.

Hard Rock incurred an extra $10,000 in fines due to those violations.

Other Tennessee sports betting issues discussed

The SWAC meeting on Wednesday also covered various other topics.

Regulators deliberated on the possibility of altering the current mandate in Tennessee that requires the use of Official NFL data for sports wagering services. Concerns were raised about the Genius Sports model, and it is unclear whether Tennessee, the sole state with this requirement, will reconsider and permit a more competitive sports betting approach.

The contentious 10% mandatory hold requirement in Tennessee was discussed during Wednesday’s meeting. Operators are currently falling short of the 10% hold rate, resulting in an estimated loss of $22.5 million for the state annually. It is unclear if the state will revise the rules by removing the mandatory hold or begin imposing fines on providers who do not reach the threshold. In 2026, nine out of the state’s 11 operators failed to achieve the 10% hold rate.

In more Tennessee legal sports betting updates, Fanatics Underscoreg is gearing up to become part of the Tennessee sports betting market. Alex Smith, VP of regulatory affairs, stated that the launch of Fanatics Tennessee will happen “very soon after this meeting.”