Online sportsbook Tennessee Action 24/7 was suspended by state regulators last Friday on suspicion of money laundering and fraud.
Lottery investigator Danny Di Rienzo from the Tennessee Education Lottery’s Sports Wagering Advisory Council told the regulating body that traces of money laundering and fraud were found on Tennessee Action 24/7’s betting app. Action 24/7 is the only Tennessee-based sportsbook in the state.
Various Issues Found at Tennessee Action 24/7 Mobile App
Di Rienzo detailed the allegations, highlighting one Action 24/7 account which was opened with a $10 balance but was deposited successfully 124 times from seven different credit cards. According to Di Rienzo, there was little betting action on the account yet multiple withdrawals worth tens of thousands of dollars were made to the account after the deposits.
The former secret service officer also identified Action 24/7 as one of the Tennessee sportsbooks which accepted illegal bets related to Super Bowl LVI. A total of 41 out of state residents placed a proxy bet through an individual in Tennessee on Action 24/7’s website to circumvent geolocation requirements of being present in Tennessee to place legal Tennessee sports bets.
Action 24/7 Says it Curbed the Illegal Activity
Tennessee Action 24/7 co-founder Tina Hodges admitted to the suspicious activity at its betting app. However, Hodges said that an Action 24/7 employee discovered the scheme and the company immediately suspended the player accounts. Hodges added that Action 24/7 has instituted additional control measures to curb such illegal activities and none has has happened since that isolated incident. The company says that it will appeal the suspension.
Action 24/7 was founded by Advance Financial executives. Although the lending company initially said that the two businesses are not linked, they secured permission earlier this year to allow customers at Advance Financial’s over 100 Tennessee locations to deposit funds to their betting accounts. However, a bipartisan bill currently in the General Assembly is looking to prohibit deposits made at the payday lender for fears that the company is using Action 24/7 winnings to pay off debts at Advance Financial.