• About Us / Contact
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona Sports Betting
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Michigan
    • Mississippi
    • New Jersey
    • New York
    • Ohio Sports Betting
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia Sports Betting
    • Massachusetts Sports Betting
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Guide To ‘Risk-Free’ Bets
    • Common Beginner Mistakes
    • Sports Betting Podcasts
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Partnership Tracker
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona Sports Betting
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Michigan
    • Mississippi
    • New Jersey
    • New York
    • Ohio Sports Betting
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia Sports Betting
    • Massachusetts Sports Betting
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Guide To ‘Risk-Free’ Bets
    • Common Beginner Mistakes
    • Sports Betting Podcasts
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Partnership Tracker
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Tennessee Action 24/7 License Suspended Due To Discovery Of Financial Crimes On Platform

Tennessee Education Lottery investigator says credit card fraud, money laundering, and illegal proxy betting all occurred

Brett Smiley by Brett Smiley
March 19, 2021
in Regulation
(Screencap via Action247 website)

(Screencap via Action247 website)

Share on FacebookShare on Twitter

Update: Following the meeting and the board’s decision on Friday, Tennessee Action 24/7’s CEO Tina Hodges provided selected media outlets with the following statement:

The Board today indefinitely suspended Action 24/7’s sports betting operator license for suspicious player deposit activity. Β This suspicious activity was detected quickly by Action staff and Action swiftly suspended the involved player accounts. Β Action instituted additional controls to curb the activity, and no further such activity has occurred since. Β Yet, the Board relied upon unfounded fears of future speculative recurrences of the activity, and took draconian action just as the NCAA Tournament is beginning. Β Obviously, we are disappointed in the Board’s decision, but will continue to work with TEL staff and seek all other avenues of relief to have the suspension lifted quickly so that the people of Tennessee may continue to enjoy wagering on the Action 24/7 sportsbook

The locally owned sportsbook Tennessee Action 24/7 had its license suspended by regulators on Thursday, multiple sources told Sports HandleΒ Friday morning. During an emergency meeting of the Tennessee Education Lottery’s Sports Wagering Committee meeting later Friday, it was suspended indefinitely after an investigator told committee members that credit card fraud, money laundering, and illegal proxy betting had taken place on the platform, resulting in hundreds of thousands of dollars in transactions impacting numerous victims.

The investigator, Danny DiRienzo, said Tennessee Action 24/7 self-reported the violations, and that he received a file from a Tennessee Action 24/7 employee pointing to three separate situations showing violations. He said the violations occurred on March 8 and the sportsbook self-reported the occurrences on March 17.Β  He also said that if Tennessee Action 24/7 had put in “minimum internal controls” the situation might have been contained sooner.

“This is clearly a case of credit card fraud,” DiRienzo said. “Clearly a case of money laundering. Clearly a case of wire fraud. There are tens if not hundreds of thousands of dollars of damage done here to many victims.”

The alleged scams would work like this: A player would sign up for a small amount of money, and then dozens of deposits would be made from other card numbers. Then, with little to no gameplay, the account holder would withdraw the balance of the account.

— Erik Schelzig (@schelzig) March 19, 2021

DiRienzo also said that he did not believe that the proper controls are now in place at Tennessee Action 24/7 to prevent future violations. The board spent some time discussing how to help the company improve operations to get back online. Ultimately, board members voted to ratify the initial suspension that came down on Thursday, and then voted in favor of an indefinite suspension until such time that Tennessee Action 24/7 could demonstrate it had implemented proper internal controls to prevent future financial crimes from occurring.

“If we don’t take a holistic approach to this, lord knows what the next round is going to entail,” DiRienzo said. “The internal controls in place right now, in my opinion, will not prevent future criminal activity from occurring on this website.”

Violation was not the first

Investigator also confirms that in the prior incident, proxy betting occurred on the sportsbook:

"Hundred of bets were placed in violation of Federal Wire Act."

Individual in TN enrolled 45+ payers from out of state.

Action247 did "nothing" to investigate or stop it.

— Sports Handle (@sports_handle) March 19, 2021

The sportsbook’s Twitter account posted on Thursday evening that β€œSite [is] temporarily down for maintenance,” and as of Friday at 5:30 p.m. EST it remained offline, the sportsbook homepage noting β€œSorry, the site is unavailable at the moment. Please check back soon.” Local sources also advised that the sportsbook app is available in the App store, however it will not open after download.

The violations were the second on Tennessee Action 24/7’s platform, after others leading up to the Super Bowl. It also came out during the meeting that violations had occurred on another platform as well, though that operator was not identified.

During a board meeting on Feb. 17, lottery officials stated that the TELC had found β€œillegal activity” and β€œsignificant anomalies” occurring at two of the four sportsbooks licensed at the time, which included Tennessee Action 24/7, BetMGM, DraftKings, and FanDuel.

Officials said at the time that 74 sports wagering accounts were permanently closed in connection with the investigation, but they did not specify at which two sportsbooks the infractions had occurred.

Previous activity receives scrutiny

Site temporarily down for maintenance. brb. pic.twitter.com/D8SabPqGJg

— Action 247 (@TNAction247) March 18, 2021

Tennessee Action 24/7 is unique within the legal U.S. sports betting industry in that it is locally owned and does not operate anywhere else nationally. The company also shares ownership with another local business, Advance Financial, which operates online and physically at more than 100 locations in the state, offering customers β€œflex” loans at annual interest rates of up to 279.5%. These types of loans are similar to the more colloquially known β€œpayday loans,” often obtained by high-risk, distressed borrowers.

Since gaining permission to operate online beginning Nov. 1, 2020, Tennessee Action 24/7 has encouraged patrons to visit the storefronts to cash out their accounts on the same day, billing the feature as β€œSame Day Pay.”

On Jan. 7, the sports wagering committee approved the registration of Advance Financial Money Transmission Company LLC to accept sportsbook deposits into Tennessee Action 24/7 accounts at Advance Financial storefronts, and to transact account cashouts as well. However, this registration came with some pause during the meeting, as board chair Susan Lanigan said, β€œIt feels a little funny to me from a public policy perspective.” Lanigan also noted that the state’s Sports Gaming Act does not bar such a registration.

Action 24/7 President Tina Hodges chatted with @michaelpleahy about our app, same day pay and the launch of sports betting here in Tennessee.

Check out the interview here: https://t.co/BQJ3tm9d1j

— Action 247 (@TNAction247) December 15, 2020

But then on Feb. 8, Tennessee Rep. Darren Jernigan introduced a bipartisan bill that would prohibit these transactions, an apparent response to concern over the proximity ofΒ  high-interest lending under the same roof as sports gambling funding and withdrawals. The bill is on the agenda in the Departments and Agencies Subcommittee on March 23.

Further on the findings

In reviewing his immediate findings for the board and committee, DiRienzo said that the files supplied to him by Tennessee Action 24/7’s compliance officer on March 17 indicated that in the case of just one of the accounts examined, 184 deposits were made on the platform using seven different credit or debit cards with seven different names, and 124 of those deposits were successful in making thousands in deposits.

Prior to the board’s vote on the indefinite suspension, DiRienzo stated, “I think that we have a statutory obligation to protect integrity of sports wagering in Tennessee, and to protect the players.”

So you guys knowingly lied about the site maintenance?

— kenny (@Ewaardt) March 19, 2021

Since the federal ban on full-fledged sports wagering outside Nevada was struck down by the U.S. Supreme Court in May 2018, no legal sportsbook in any jurisdiction has had its license suspended.

TN Action 24/7 will have an opportunity to appeal the board’s decision, and according to sources, it is exploring legal avenues to have its licensed reinstated immediately, including filing for a temporary restraining order.

Members of the board as well as TELC CEO Rebecca Hargrove made note of the “awful timing” of this situation, with the emergency meeting occurring at the same time as the opening round of the NCAA men’s basketball tournament. Known as March Madness, it is one of the biggest sports betting events of the year.

“But [the sportsbook] has known about the suspicious activity since March 9,” Hargrove said. “Had they told us March 9 instead of waiting to March 17, maybe we could have worked through all this before the tournament. I feel bad for them, but that’s the timeline.”

 

This article has been updated throughout

ShareTweetShare
Brett Smiley

Brett Smiley

Brett Smiley is editor-in-chief and co-founder of Sports Handle, which joined forces with the US Bets team in November 2018. He focuses on the sports betting industry and legislation. He's a recreational sports bettor and DFS player himself, focusing on the NFL. In a past life, Smiley practiced commercial litigation in New York City and previously wrote for FOX Sports and SI.com. He lives in New Jersey with his family.

Related Posts

Tennessee April 2022 revenue report
Analysis

Tennessee Wagering Revenue Improves Slightly In April

May 24, 2022
nashville street
Industry

SuperBook Enters Tennessee At Its Own Pace, As Always

May 17, 2022
Load More

Top Sportsbooks In Your State

1
WynnBET Sportsbook
Review / 4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
FanDuel Sportsbook
Review / 4.8
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
WynnBET Sportsbook
Review / 4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
WynnBET Sportsbook
Review / 4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
FanDuel Sportsbook
Review / 4.8
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
SugarHouse Sportsbook
Review / 4.2
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
FanDuel Sportsbook
Review / 4.8
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
bet365 Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
BetRivers Sportsbook
Review / 4.2
BET NOW
T&Cs ApplyOnly 1x Wager Applies
2
FOX Bet Sportsbook
Review / 4.3
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
WynnBET Sportsbook
Review / 4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
FanDuel Sportsbook
Review / 4.8
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
FanDuel Sportsbook
Review / 4.8
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
SI Sportsbook
Review / 4.1
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
SuperBook Sports
Review / 4.3
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
BetRivers Sportsbook
Review / 4.2
BET NOW
T&Cs ApplyOnly 1x Wager Applies
1
SI Sportsbook
Review / 4.1
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
WynnBET Sportsbook
Review / 4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
BetMGM Sportsbook
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
FanDuel Sportsbook
Review / 4.8
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Caesars Sportsbook
Review / 4.4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
WynnBET Sportsbook
Review / 4
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
Betfred Sportsbook
Review / 3.8
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
BetRivers Sportsbook Ontario
Review / 4.3
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
BetMGM Sportsbook Ontario
Review / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
NorthStar Bets Sportsbook
Review / 4.6
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Bet99 Sportsbook
Review / 4.7
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
Sports Interaction Ontario
Review / 4.2
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
3
PowerPlay Sportsbook
Rating / 3.8
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
1
Monkey Knife Fight
Rating / 4.5
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.
2
PrizePicks
Rating / 4.2
BET NOW
T&Cs Apply21+. Eligibility restrictions apply. See website for details.

State Sports Betting Guides

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
June 27, 2022

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
March 21, 2021

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 22, 2022

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
March 18, 2022

Most Read Stories

mattress mack betting charade

Will Everyone Please Stop Calling β€˜Mattress Mack’ A Sports Bettor?

April 27, 2022
Photo: Jasen Vinlove/USA TODAY

Dave Portnoy Says, ‘F**k That Guy,’ To Which Bettor And Gambling Twitter Seriously Object

May 16, 2022
map-missouri

Missouri Sports Betting Bill Draws Debate, Backlash In Senate

May 5, 2022
golden-gate-bridge-san-francisco

California Tribes Won’t Try For Mobile Proposal On 2022 Ballot

May 10, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

gambling therapy
ncpg
igaming ontario
If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) (IL). Gambling problem? Call 1-800-GAMBLER (NJ/WV/PA/MI), 1-800-9-WITH-IT (IN),Β 1-800-522-4700Β (CO), 1-800-BETS OFF (IA),Β 1-888-532-3500Β (VA) or call/text TN REDLINEΒ 1-800-889-9789Β (TN).
19+. Please play responsibly. Terms and conditions apply.Β 
Individuals must be 19 years of age or older to participate in igaming in Ontario. Gambling can be addictive, please play responsibly. If you, or someone you know, has a gambling problem in Ontario and wants help, please visit ConnexOntario or call their helpline at 1-866-531-2600. Operators on this website operate pursuant to an Operating Agreement with iGaming Ontario.

Search Sports Handle

No Result
View All Result
  • About Us / Contact

No Result
View All Result
  • US Sports Betting
    • Arizona Sports Betting
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Michigan
    • Mississippi
    • New Jersey
    • New York
    • Ohio Sports Betting
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia Sports Betting
    • Massachusetts Sports Betting
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Guide To ‘Risk-Free’ Bets
    • Common Beginner Mistakes
    • Sports Betting Podcasts
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Partnership Tracker
  • News

Please share your location to continue.

Check our help guide for more info.

share your location