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Memphis News & Weather | Memphis, TN | WATN - localmemphis.com

Judge blocks state hearing on Tennessee sportsbook's status

Lottery officials suspended the license for online gaming company Tennessee Action 24/7 last month over suspected user debit card fraud.
Credit: Action 24/7

NASHVILLE, Tenn. — UPDATE 4/14/2021 - NASHVILLE, Tenn. (AP) — A Tennessee judge who allowed a sportsbook to resume taking bets after questioning how its license was suspended has blocked state regulators from holding a new suspension hearing.

Davidson County Chancellor Patricia Head Moskal wrote that the Tennessee Lottery can't hold a planned administrative hearing Wednesday on the suspension of Tennessee Action 24/7 amid the litigation. 

Lottery officials suspended the company's sportsbook license last month over suspected user debit card fraud.

Action 24/7 sued over the suspension, and the judge ordered reinstatement while the case proceeds. The state attorney general's office had said any action taken at another suspension meeting would not take effect without judicial approval.

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3/26/2021 - NASHVILLE, Tenn. (AP) — A Nashville judge has ruled that Tennessee Education Lottery officials must reinstate the license of a sports betting company that was accused of lacking the proper safeguards to stop debit card fraud.

During an emergency hearing on Wednesday, attorneys for Tennessee Action 24/7 argued that the amount of fraud was exaggerated and the company acted quickly to contain it. They said the suspension at the beginning of March Madness was destroying their business.

The judge also ruled Friday that the rights of company officials were likely violated when they weren't allowed to present their side of the story to the lottery board.

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3/24/2021 - NASHVILLE, Tenn. (AP) — A Tennessee sports betting company has sued state officials to try to overturn their suspension of the firm's sportsbook.

Tennessee Action 24/7 on Monday filed the lawsuit targeting Tennessee Lottery officials for suspending the company last week at the outset of the men's basketball NCAA Tournament. 

The company is arguing that correct regulatory processes weren't followed and an investigator jumped to conclusions about the level of debit card fraud that had occurred. 

Lottery officials have questioned why it took more than a week for the company to notify them of the issue. 

The suspension remains in effect until a review finds that proper internal controls are in place.

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3/19/2020 - The license of a Tennessee sportsbook has been suspended.

In a tweet by Action 24/7 Friday afternoon, the online gaming company said its license was suspended indefinitely by the Tennessee Education Lottery.

The tweet read, “The Board today indefinitely suspended Action 24/7’s sports betting operator license for suspicious player deposit activity. 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. 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. 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 to that the people of Tennessee may continue to enjoy wagering on the Action 24/7 sportsbook.”