Tennessee Suspends: For the first time since sports betting became legal in the United States, a sportsbook has had its license suspended. Action 24/7 sportsbook has been suspended by the Tennessee Education Lottery’s Sports Advisory Council.
The decision comes following the sportsbook self-reporting of alleged credit card fraud, money laundering, and illegal proxy betting on its platform.
Danny DiRienzo, an inspector for the Tennessee Lottery, received news of the illegal actions from an employee at Action 24/7. According to DiRienzo, the employee notified him about 23 incident reports from accounts via email.
After looking into the situation Dirrienzo said that he was able to see enough evidence to see that money was being funneled into the site illegally.
Usually, in the terms and conditions of a legal sportsbook site, the site will make it clear that any illegal or criminal activity from players will cause the termination of their account and even lead to the potential of a criminal investigation.
“The Board today indefinitely suspended Action 24/7’s sports betting operator license for suspicious player deposit activity,” Action 24/7 President and CEO Tina Hodges said. “This suspicious activity was detected quickly by Action staff and Action swiftly suspended the involved player accounts.
Action instituted additional controls to curb the activity, and no further such activity has occurred since.”
Hodges went on to say that she believes that the sanctions sent down by the Tennessee committee brought down on the sportsbook are too harsh as the NCAA March Madness tournament was about to begin.
“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,” Hodges said.
Hodges said that the company will continue to comply and work with the committee following the suspension of the sportsbook and hopes that their betting license can be reinstated soon.
Action 24/7 sportsbook immediately took action in an attempt to fix these problems and to protect the site from fraud from players, but investigators did not believe that these measures were enough with such a serious situation taking place.
“I don’t believe for a second that even the improvements that they’ve made since yesterday, which are a step in the right direction, that they will be able to stop criminal activity from happening,” DiRienzo said.
If this sportsbook had a plan and way to stop this activity then you would have expected this issue to have been taken care of a while ago. The decision to suspend the sportsbook seems to be the right approach to try and get a change out of the company.
It is important to note that these sanctions are coming down to Action 24/7 sportsbook after they have already been under investigation before. This is a very serious issue and the fact that this company has now been a repeat offender of suspicious and illegal activity is not a good thing.
“I tried to snipe solutions with them last time,” DiRienzo said. “We didn’t take a holistic approach and maybe we should have. If we don’t take a holistic approach this time, Lord knows what the next round is going to entail.”
It will be interesting to see how the future of this sportsbook plays out. As it was noted above, this sportsbook license was suspended just before the NCAA tournaments started.
The NCAA tournament is one of the most popular tournaments in all of the sports and has a tremendous amount of sports wagers placed. The suspension of this sportsbook could not have come at a worse time and it will be interesting to see how customers take this and if they will ever return or use their services.