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Judge Lifts Suspension of Action 24/7 License

The first-ever sportsbook to have its license suspended in the U.S. was Action 24/7 in Tennessee. The suspension came after the Tennessee Education Lottery (TEL) voted to uphold a prior ruling, and the state put an indefinite ban in place.

Danny DiRenzo was the lead investigator for the TEL, and he found that Action 24/7 had failed to monitor and report substantial criminal activity on the site. Action 24/7 is a locally owned sportsbook that was looking to compete with some of the biggest names in the sports betting industry.

DiRenzo reported that money laundering, fraud, and bettors using proxy accounts were all taking place at Action 24/7, resulting in hundreds of thousands of dollars in bets. Action 24/7 did make the TEL aware of this activity, but only more than a week after they found out it was happening.

An employee at Action 24/7 eventually sent an email to DiRenzo highlighting the criminal activity on the site, but the TEL went ahead with the suspension before the investigation was complete. This incident wasn’t the first time Action 24/7 has come under question from the TEL, prompting quick action.

Action 24/7 also attempted to cover up the license suspension and keep its customers unaware of what was going on. According to an announcement, the site went down one day due to “planned maintenance,” but it never flipped back on the next day.

The timing of this suspension for Action 24/7 could not have  been more inopportune.  People were unable to place bets on the 2021 NCAA Men’s Basketball Tournament. The tournament is the second biggest sporting event in the U.S., and that was a painful loss for the company to take.

Action 24/7 quickly announced that it was filing a lawsuit against the TEL in hopes of getting its license reinstated. A decision was expected to come before the end of March.

Lifting the Suspension

As reported in Gambling News, Action 24/7 was able to get its case in front of a judge rather quickly, and the company was able to get a desirable verdict.. Last week, a judge in Chancery Court granted an injunction to Action 24/7, lifting the indefinite suspension at this time.

Action 24/7 sportsbook was looking to get the suspension lifted because it considered the indefinite ban to lack due process.

The TEL has a very strict and detailed plan in place for handing out suspensions, but it did not follow protocol in the case of Action 24/7. The sportsbook felt as if it had been unfairly singled out and believed that it deserved another chance.

It’s unclear what the next step will be in this process, but Action 24/7 can go live once again before another hearing is held.  The ban is lifted… for now.

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