BetOnline, a long-established online betting platform operating out of Panama, is feeling the heat from U.S. regulators after being hit with multiple cease-and-desist letters for allegedly operating without proper licenses in at least four American states.
While the company touts its Panamanian registration under the entity “Termas del Arapey Management S.A.” and claims full compliance with local gaming laws, U.S. authorities see things differently.
Massachusetts Attorney General Andrea Joy Campbell recently issued a formal warning accusing BetOnline of offering unauthorized sports betting and horse racing wagers without a valid license from the Massachusetts Gaming Commission. Michigan’s Gaming Control Board followed suit, stating that BetOnline.ag was facilitating a range of illegal gambling options—ranging from slots and blackjack to eSports and poker—without a green light from state regulators.
Michigan’s order gave the company 14 days to halt all operations or face legal consequences. Tennessee and Louisiana also joined the crackdown, with Tennessee’s Sports Wagering Council issuing escalating fines: $10,000 for the first offense, $15,000 for the second, and $25,000 for the third.
Despite mounting pressure, BetOnline insists that it operates fully under Panamanian jurisdiction and does not offer services to residents of Panama. Still, critics argue that the platform is exploiting legal gray zones by offering gambling access in markets where it lacks formal authorization.
The case underscores growing tensions between local gaming laws and cross-border enforcement in the online betting space. As U.S. states tighten oversight and demand licensing compliance, operators like BetOnline could find their days of regulatory leniency numbered.
