The Case Continues For Tennessee Action 24/7 & Reinstatement

No verdict is in for the appeal of Tennessee Action 24/7 Sportsbook to have their sports betting license reinstated.
The case is at a standstill as the state believes the Tennessee Education Lottery Corporation (TELC) was well within its rights to suspend a license indefinitely because they regulate the industry.
Tennessee Action 24/7 hopes to have their license to do business back before the end of March Madness on April 5.

NASHVILLE, Tenn. – On March 18, Tennessee Action 24/7 became the first sportsbook in the nation that had its license suspended indefinitely.

Charges of wire fraud, money laundering, and credit card fraud were among the reasons for the suspension after a thorough investigation was done by the Tennessee Education Lottery Corporation (TELC).

Tennessee Action 24/7 took matters into their own hands by bringing a lawsuit of their own against the TELC to appeal the suspension and have their license restored immediately. On Wednesday, the Davidson County Chancery Court heard the case but no final decisions were made.

What’s Happening With This Issue?

The TELC began investigating Tennessee Action 24/7 after red flags were raised about fraudulent activity happening with Super Bowl betting action. At the moment, the current tally of money involved in this activity is $22,661. Similar irregularities began to happen at the start of March Madness that led the TELC to call an emergency meeting resulting in the indefinite suspension of the sportsbook the evening of March 18.

Chancellor Patricia Head Moskal is presiding over the case where Counsel E. Steele Clayton IV, representing Tennessee Action 24/7, stated that the TELC acted too swiftly in their decision and had no right to automatically stop the business of the sportsbook without notice.

It was also said that the TELC should have at least given the company a chance to speak to their side of what happened. The investigation for the TELC on the activities of Tennessee Action 24/7 was done by Danny DiRienzo, a former Secret Service Agent with the United States who found over forty discrepancies within a three-day period.

The charges in question took place from March 9-March 12 but were only disclosed by the sportsbook on March 17 after realizing that an employee with the company admitted that fraud was taking place to DiRienzo.

Although no ruling was handed down, the state has a sound argument on its side. Lindsay Sisco, a Tennessee Assistant Attorney General is speaking for TELC in this matter and told the court that the state believes that the TELC has the right to suspend a license without a legal process because they are the regulators of the Tennessee sports betting industry.

Additionally, if fraud or any other evidence is in the possession of the TELC, they do not need to give notice nor hold a hearing for a sportsbook to give their side of the story when suspending a license or taking any action against a sports betting platform for wrongdoing.

Now What?

No hearing date is scheduled for when this case will be heard again, although hopefully it will be given a judgment this time around. Tennessee Action 24/7 wants to take bets for March Madness and is hoping to be reinstated before the tournament ends April 5, although the judge gave no indication of a ruling happening before then.

Tennessee Action 24/7 was previously in the news because they are a sportsbook owned by loan company Advance Financial and allowed their sports bettors to pay of gambling debts with loans provided by Advance Financial.

Surprisingly, the company is continuing to send promotions to their customers despite being unable to do business. They seem to be betting on themselves to have the decision overturned and begin to take wagers once again in Tennessee.

Should this happen, they may bring another lawsuit against the TELC for damages of all the money lost while they were shut down for what they believe to be an unjust action that was done by the TELC from the beginning.

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Christina Monroe

Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.