Action 24/7 Looks To Start A New Chapter As Suspension Drama Ends

Posted on May 17, 2021

Tennessee sportsbook Action 24/7 is now in “good standing” with the Tennessee Education Lottery (TEL) after its suspension in March.

The news came after months of litigation, concluding in a letter that officially puts the matter to rest.

Action 24/7 suspension comes to a close

On Wednesday, May 12, TEL Vice President and General Counsel member Alonda McCutcheon sent a written statement to Action 24/7. In the letter, she notes that the sportsbook’s temporary suspension is now “null and void“.

Furthermore, the TEL has no current investigations pending with the operator.

The announcement follows last week’s board meeting, where the TEL unanimously approved to resolve the ongoing litigation. The letter cites deficiencies in internal controls as the primary reason for suspension, noting that the operator now meets all requirements.

As a result, the TEL rescinded all allegations and any disciplinary action previously taken against Action 24/7.

Action 24/7 CEO Tina Hodges is eager to move forward from the suspension and to continue building the Action 24/7 brand. In an official statement, 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.”

The story behind the nation’s first sportsbook suspension

On March 18, Action 24/7 became the first sportsbook in the country to have its license suspended. The suspension resulted from a swarm of issues regarding money laundering, proxy betting, and credit card fraud happening on the site.

TEL special investigator Danny DiRienzo noted that if the operator had appropriate internal controls in place, the issues of fraud would have been resolved much earlier.

Action 24/7 disagreed, taking the matter to court and suing the regulator. The sportsbook argued that the appropriate steps had already been taken to improve internal controls and prevent future issues. The operator also argued there was a lack of due process in the suspension process.

On March 26, a Nashville judge, Patricia Head Moskal, ultimately concluded that the TEL failed to follow due process when originally issuing the suspension. She ordered the sportsbook’s license to be reinstated while litigation continued. The judge then took the matter a step further on April 13.

She concluded that the TEL had no right to take subsequent action on the issues she had already ruled over.

Action 24/7 gets the go-ahead

While the issues in question may still be under investigation by law enforcement, that matter is separate from the sportsbook’s standing with the TEL. In the eyes of the regulators, Action 24/7 is now in the clear.

The sportsbook’s internal controls now meet state requirements. There are no longer any restrictions on the book for doing business in Tennessee.

Action 24/7 will operate under a watchful eye going forward. The temporary suspension didn’t seem to slow down its momentum, though. In March, the sportsbook set a new record for itself by generating over $4.5 million in handle, a 285% increase from February.

Although this marks a substantial increase for the sportsbook, it still only accumulated 2.2% of all sports betting handle during the month.

With allegations officially cleared, Action 24/7 can move full steam ahead with efforts to establish itself in the market.

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Alec Cunningham

As a college athlete, Alec Cunningham played Division II golf at Tusculum University. She graduated in 2015 with a bachelor’s degree in Journalism and Professional Writing. Alec has spent the last five years working in the music industry as a concert promoter, tour manager and artist developer. As a journalist, she has covered a variety of topics and currently specializes in the Tennessee online sports betting industry.

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