Judge reinstate Action 24/7′s Tennessee sports betting license
Action 24/7 made US sports betting history last week when it had its license to operate in Tennessee suspended and reinstated over the course of about 24 hours. The operator, which only holds one gambling operator’s license, was the first US operator to have its license suspended for any reason, though that a judge granted an emergency ruling that had the company back in business in short order.
At the heart of the case was an accusation by regulators, the Tennessee Education Lottery Corporation (TEL) of rampant proxy betting and possible money laundering through the site. In particular, TEL regulators were upset about a player who made 184 deposits, using seven different credit cards (none of which were in his name). That same player also engaged in “very little gameplay”.
Whatever the merits of the case against Action 24/7 a judge found that regulators acted too quickly, and may not have even had the proper legal authority, when they suspended the operator’s sports betting license. This was, in part, because board members didn’t have time to read the charges against the company while one member acted, more or less, on his own device.
TEL board member board member William Carver described the haste to suspend Action 24/7′s license saying, “Due to the circumstances we have identified, the risk to players, the risk to non-player victims as a result of fraud, the fact we did have a week’s delay in receiving notice, the fact that minimum internal controls are in suspicion, I would make a motion to indefinitely suspend the license of Action 24/7.”
Unfortunately for TEL, a local judge disagreed and allowed the operator an emergency injunction to continue operating; a decision that allows Action 24/7 to accept wagers on the Men’s College Basketball Tournament.
In a statement quoted by igbNorthAmerica.com, Action 24/7 CEO Tina Hodges praised the judge’s decision saying, ““We applaud the Court’s decision and look forward to working with state officials to ensure public safety and trust in our regulatory system while maintaining an environment for businesses to thrive in Tennessee,”