Tennessee's regulator says Action 24/7 license suspension is invalid

The Tennessee Education Lottery (TEL) on Thursday said its suspension of Action 24/7’s sports gaming license is “null and void", reports the Nashville Post.

The TEL’s suspension of Action 24/7's license came on March 19 from Lottery Board Chair Susan Lanigan after accusations of money laundering and suspected credit card fraud.

Action 24/7, which is run by executives who also run Advance Financial, filed suit against the Lottery four days later, saying that Lanigan acted unlawfully because she didn’t consult the full Lottery board or its Sports Wagering Committee, but in an emergency meeting the following day, the full Lottery board endorsed Lanigan's decision.

Action 24/7 attorneys argued that its business suffered substantial harm from the suspension of its license just as the NCAA Tournament was starting. Action 24/7 maintained that had the sportsbook been banned from taking bets during the NCAA Tournament they wouldn’t have been able to survive.

Action 24/7 President Tina Hodges said: "We are pleased that this matter is coming to a close. We appreciate our loyal players and friends across the state for their unwavering support. Tennessee is our home. We are proud to be the only locally owned and operated licensed sportsbook.”

"We remain committed to working with the TEL Board and the Sports Wagering Council to maintain an environment of compliance and integrity for the Tennessee sports wagering community."

In its letter Thursday the Lottery said the following, among other things:

• There is currently no active investigation of Action 24/7 being conducted by any of the Board, the SWC, or the TEL Staff regarding the allegations presented by the TEL Staff to the Board at the Board’s March 19, 2021 meeting or the adequacy of Action 24/7’s internal controls.
• Action 24/7’s internal controls and Action 24/7’s implementation thereof meets the requirements found in the Minimum Internal Control Standards.
• Action 24/7’s License is fully effective; there are no restrictions on Action 24/7’s License, and Action 24/7 is in good standing with TEL.
• The temporary suspension of Action 24/7’s License, and the disciplinary action undertaken by any of the Board, the SWC, or the TEL Staff related to the allegations presented by the TEL Staff to the Board at the Board’s March 19, 2021 meeting, are null and void.
• Action 24/7 is entitled to the full use and benefits of its License, including, but not limited to, the ability to freely transact with other TEL licensees and vendors or other parties.