- The first sportsbook in the nation to get suspended is suing the regulator for reinstatement of their license.
- Tennessee Action 24/7 states that the Tennessee Education Lottery did not follow proper protocol by law when suspending their license indefinitely.
- The appeal is set to be heard before a judge on Wednesday.
NASHVILLE, Tenn. – On Thursday, Tennessee Action 24/7 became the first sportsbook in the nation to receive an indefinite suspension on their license to operate and as of Tuesday they are suing the Tennessee Education Lottery (TEL) in order to get their license back.
The sports betting operator claims that the TEL took away their right to do business before any legal action had taken place making the revoking of the license unlawful on the part of the lottery. They are requesting an immediate reinstatement to resume their business operations as March Madness betting ensues.
Tennessee Actions 24/7 was a mobile sportsbook in Tennessee up until last week when they had to stop all operations due to alleged fraud and money laundering taking place on their site. The company has been under investigation since the Super Bowl. There are at least 40 incidences of wire fraud that occurred prior to the Super Bowl that was the red flag for a deep dive into the operation’s activities.
The TEL investigator Danny DiRienzo found multiple occasions, at least 23 reported by the sportsbook themselves where some sort of credit card fraud or money laundering took place. These instances happened on March 9 but Tennessee Action 24/7 did not come forward with their findings until March 17. They were shut down on the evening of March 18 in the middle of taking March Madness bets.
A court date is set for Wednesday afternoon with the Davidson County Chancery Court. The lawsuit claims that TEL Board Chair Susan Lanigan did not have the full authority to take away the sportsbook’s license although her decision was backed by the entire board. Tennessee Action 24/7 Sportsbook is requesting an immediate reinstatement of their license for in the Tennessee legal sports betting market.
Until a judgment is handed down, the lawsuit against TEL states that the stopping of business could lead to catastrophic losses. This may be a prelude to damages sought for the lost time in the future is dependent upon a judge’s decision for the appeal.
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.