Tennessee Education Lottery, temporarily suspended Action 24/7’s license last week. The watchdog claims that it found evidence of money laundering and credit card fraud.
Tennessee Regulator Temporarily Suspends Action 24/7’s License
Four operators offered legal sports wagering during Super Bowl LV in Tennessee last month. Those are DraftKings, FanDuel, BetMGM, and Action 24/7. However, last week, Action 24/7’s license was temporarily suspended over credit card fraud and money laundering suspicions.
On Thursday, the Tennessee Education Lottery (TEL) alleged that it found signs of money laundering as a part of an investigation. Consequently, during a meeting on Friday, TEL decided to temporarily suspend the operator’s license.
TEL Investigator Reveals the Alleged Violations
TEL investigator, Danny DiRienzo, spoke to the lottery on Friday and was cited by ESPN. He revealed that allegedly from a single opened account, there were 184 attempts for a deposit, 124 of which were successful. The deposits were completed by seven different individuals with different debit or credit cards. Furthermore, DiRienzo claimed that this involves “tens of thousands of dollars“. Based on his vast experience, he claimed that the evidence present is “typical” for every credit card fraud case which he has worked on.
According to DiRienzo, the probable violations were identified on March 9 by Action 24/7. However, the operator contacted TEL on March 17. Considering this, he claimed that based on the facts, Action’s internal controls “are not in place to prevent future criminal conduct“.
Another point that TEL’s investigator raised was concerning bets placed on Super Bowl LV. He claimed that approximately 40 accounts placed “proxy bets” on Action’s website with the help of residents from Tennessee. DiRienzo stressed that this violates the Federal Wire Act.
Action Is Disappointed with TEL’s Decision
Responding to the allegations, Action 24/7’s CEO, Tina Hodges, released a statement on Friday. She stressed that the TEL “relied upon unfounded fears of future speculative recurrences”. Furthermore, in light of the start of the NCAA Tournament, Hodges deemed the action as “draconian”.
She added that Action is disappointed with the decision, but it will continue to work with the TEL. In conclusion, Hodges said that she hopes that the suspension will be lifted quickly so that Tennessee residents can continue to enjoy wagering on the company’s sportsbook.